1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) January 18, 2000 --------------------------- Citigroup Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-9924 52-1568099 - --------------- ----------- ------------------- (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 153 East 53rd Street, New York, New York 10043 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (212) 559-1000 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) 2 Citigroup Inc. Current Report on Form 8-K Item 5. Other Events. On January 18, 2000 Citigroup Inc. reported core income of $2.61 billion for the fourth quarter ended December 31, 1999. For the full year, core income was $9.95 billion, a 57% increase over the prior year. * Core income per diluted share for the quarter, at $0.75, reflected an 88% increase from the comparable 1998 period, on the strength of broad-based revenue growth, continued progress on expense controls and stable credit quality. * Record earnings in the Global Consumer business and robust growth from the integrated Global Corporate and Investment Bank contributed to the strong performance in the quarter and the year. * The Company generated a return on equity of 22.3% in the quarter, and 22.7% for the year. * Citigroup achieved its stated target of $2 billion in annualized expense reductions and expects to make further progress on expenses in 2000. * Citigroup has total equity capital and trust securities reaching $54.6 billion at the end of 1999, up from $47.0 billion at the end of 1998. The Tier 1 capital ratio is 9.6%. * In 1999, Citigroup delivered additional value to shareholders by repurchasing $4 billion in stock, primarily to fund Citigroup's employee benefit plans. Earlier this year, Citigroup also announced a 17% dividend increase and a 3-for-2 stock split. * Net income was $2.62 billion for the quarter, and $9.87 billion for the year, up 287% and 70% respectively. John S. Reed and Sanford I. Weill, Chairmen and Co-Chief Executive Officers of Citigroup, said: "The superior results we achieved in the first full year of our merger underscores our progress in establishing Citigroup as a world-class, global growth company. Each of our businesses reinforced its leadership during the year, creating a strong foundation for future profit growth. Collaborative efforts among our operations are resulting in new ways to serve customer needs and creating powerful opportunities for our businesses. With revenues twice the level of expenses, it is clear that our efficiency efforts are magnifying the impact of revenue gains on the bottom line. "Our exceptionally strong capital position and the successful integration of our global businesses will enable us to take full advantage of the new financial modernization legislation in the coming year. This legislation opens up new horizons for our Company and will facilitate our expansion in the global financial services arena. Our already impressive geographic and business diversity provides us with several important advantages. It has proven its power during a vibrant global market environment and will be even more critical as a source of stability and opportunity when market conditions are less robust. Our diversity also enhances our position on the Internet, enabling us to deliver to a greater number and range of customers a broader array of quality products and services than virtually any other financial services company. And, with approximately 30% of our earnings generated from outside the U.S. and our recent expansion efforts in Latin America and Japan, we are well-positioned in regions likely to achieve higher growth in the coming year. "As we continue to forge new ground with our pioneering combination," continued Messrs. Reed and Weill, "we are delighted to be joined in the Office of the Chairman by Bob Rubin, whose expertise and insight are already making positive contributions." 3 GLOBAL CONSUMER 4TH QUARTER CORE INCOME: $1.17 BILLION, UP 35% FROM 1998 PERIOD 1999 CORE INCOME: $4.30 BILLION, UP 38% The Global Consumer business achieved record results for the quarter, generating an 8% increase in revenues through internal growth and acquisitions, while holding expense growth to only 2%. The business also benefited from stable credit quality in most regions of the world. Recent acquisitions in the cards and consumer finance segments across Argentina, Chile, Mexico, Australia and the U.S. were accretive in 1999. The business also continued to expand its presence in Japan, where the Company now has more than one million customers. During the quarter, e-Citi continued to develop Citigroup's Internet presence. Leveraging its leading market share in cards in the U.S., the Company introduced ClickCredit, an electronic line of credit designed specifically for purchases on the Internet. In tandem, Citigroup launched CitiPlaza, its on-line shopping portal featuring a variety of merchants and shopping services. The Company expects these initiatives to help expand its existing base of more than three million customers who are now doing business with Citigroup on-line. Furthermore, early cross marketing efforts have yielded positive results and are expected to contribute a greater level of revenues in 2000. - BANKING/LENDING income rose 43% to $612 million. Revenues increased 14% at Citibanking North America, as efforts to enhance sales processes resulted in growth in investment product sales and customer deposits. Expenses declined 21%, or $91 million, from the comparable quarter last year, contributing to core income growth of 578%. Mortgage Banking income rose 4%, as increased student loan volume and the contribution of Source One, acquired earlier in 1999, offset a higher credit provision. Cards income increased 11% as a 4% rise in U.S. bankcard sales volumes and 7% growth in receivables to $74.2 billion offset the impact of rising interest rates. U.S. bankcard credit losses continued to improve, declining 39 basis points over the prior year, to 4.43%. Acquisitions and record production by Primerica agents helped fuel a 30% increase in receivables at CitiFinancial. The credit environment and a continued shift towards real estate secured products improved the charge-off rate to 2.19%, down 48 basis points from one year ago. - INSURANCE income increased 9% to $344 million. Travelers Life and Annuity reported a 9% increase in income, driven by strong business volumes in the annuity and individual life product lines and higher net investment income, offset by certain mortality and other expenses. Primerica core income rose 12%, driven by increased sales of investment products, debt consolidation loans and life insurance in force. Travelers Property Casualty Personal Lines core income rose 7%, as increased production and lower weather-related losses were partly offset by lower prior year reserve development. Net written premiums increased 2%, as strong sales through independent agents and diversified distribution channels were offset by the curtailment of the SECURE product. - INTERNATIONAL income grew 37% to $291 million. Europe, Middle East and Africa continued its strong performance, recording a 53% increase in core income on higher business volumes in Germany and the expansion of new markets in Central and Eastern Europe. Latin America achieved a 118% increase in core income, as continued improvements at Brazilian credit card affiliate Credicard, contributions from new acquisitions, and successful expense control efforts offset the impact of higher credit losses. Revenues rose 19% in Asia Pacific on higher business volume and contributions from the Diners Club franchise in Australia, which was acquired in December 1998, although higher spending on new business initiatives and increased credit costs in certain countries held income growth to 2%. 4 GLOBAL CORPORATE AND INVESTMENT BANK 4th Quarter Core Income: $1.31 billion, up 136% from 1998 Period 1999 Core Income: $5.08 billion, up 114% Citigroup's Global Corporate and Investment Bank capped a record year with robust fourth quarter earnings. Continued strong growth in investment banking revenues, coupled with the group's leadership on a number of ground-breaking transactions around the world, underscored the success of the integration of Salomon Smith Barney and Citibank's Global Corporate Bank. Most recently, Salomon Smith Barney is advising America Online on its $130 billion announced merger with Time Warner. SSB investment banking revenues generated with Citibank's target Global Relationship Banking clients rose 47% over the prior year. On the strength of the combined business, Citigroup was recognized as "Bank of the Year" by International Financing Review, which also named Citibank/SSB "Loan House of the Year" and "Asia-Pacific Loan House of the Year". SSB was named as "Dollar Bond House of the Year". Citibank was ranked number one in Global Transaction Services by Global Finance and the top bank in Cash Management, Foreign Exchange and Project Finance, as well as the top Emerging Markets Bank, by Corporate Finance Magazine. SSB continues to rank second in global underwriting and first in municipal finance. Nikko Salomon Smith Barney vaulted to a leadership position in investment banking in Japan, acting as joint global coordinator and bookrunner for NTT's $15 billion privatization offering. The NTT privatization was the largest secondary offering in history and the second largest telecom offering ever, after NTT Docomo ($18 billion), which Nikko-SSB also lead managed. * Salomon Smith Barney reported record performance in the quarter, including the highest commission and investment banking revenues in its history and strong principal transactions and asset management revenues. The $664 million of core income exceeded 1999 third quarter performance by more than 50%. Return on equity reached 31.2% in the quarter, including SSB's assets management business in the Global Investment Management segment. Core income was up substantially from the fourth quarter of 1998, when results were negatively affected by extreme market volatility. Annualized gross production per financial consultant increased to $498,000 for the fourth quarter, and by year-end, total client assets under fee-based management (with revenues retained in this segment) topped $100 billion for the first time. * The Global Corporate Bank reported income of $441 million, up 30% from the 1998 fourth quarter. Revenues increased 6%, reflecting double-digit growth in Latin America, Central and Eastern Europe, Middle East and Africa, and more moderate growth in North America and Europe. In Asia, lower expenses and improved net write-offs substantially offset revenue declines from lower trading activity. The business produced its sixth consecutive quarter of declining expenses, as restructuring actions, ongoing expense initiatives and lower Year 2000 and European Economic Monetary Union costs drove a 5% reduction. * Travelers Property Casualty Commercial Lines' core income was essentially flat with that reported in the fourth quarter of 1998. Pricing trends, while continuing to show improvement during the quarter, had yet to be sufficient to raise profitability of new business in the middle market to acceptable levels. Investment income was down in the fourth quarter of 1999 versus an exceptionally strong level of net investment income in the prior year period, which was offset by lower weather-related costs and favorable prior year reserve development. 5 GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING 4TH QUARTER CORE INCOME: $153 MILLION, UP 34% FROM 1998 PERIOD 1999 CORE INCOME: $602 MILLION, UP 19% The Global Investment Management and Private Banking business continues to strengthen its organization and position itself to capture significant asset flows. Among the highlights of the quarter was the signing of an agreement with State Street to form CitiStreet, a jointly owned global benefits delivery company that will focus on the defined contribution and total benefits administration markets for corporate and not-for-profit organizations. - ASSET MANAGEMENT income rose 50% over the prior year period to $78 million, with an 11% increase in assets under management and a double digit rise in revenues. This growth more than offset higher costs associated with building the business's global sales and marketing capabilities and continued investments in research, quantitative and technology expertise. This investment management build-out is now more than 75% complete. Assets under management rose to $364 billion including $31 billion managed for Global Private Bank clients. Cross-selling efforts helped to fuel a 12% increase in institutional client assets to $155 billion, with the Corporate Bank channel alone generating an additional $8 billion in client assets. Sales of the Group's proprietary mutual funds represented 34% of SSB's retail channel mutual fund sales for the year versus 31% in 1998. The Group also accounted for 56% of Primerica's U.S. mutual and money fund sales for the quarter and 60% for the year. Sales of Smith Barney Private Client separately managed accounts were up more than 80% from the prior year quarter and 117% for the year. The Group sold $638 million of mutual and money funds through the Citibank consumer bank in Europe for the quarter, and $3.0 billion for the full year. In Japan, sales through both the Citibank consumer bank and non-proprietary channels generated $470 million in mutual and money funds in the quarter, and $2.0 billion for the year. Core income for PRIVATE BANKING rose 21% to $75 million in the quarter. Revenues increased 12%, as a result of strong investment product fees and increased lending activity across all regions. Client business volumes, which includes loans, deposits and other client assets under management and custody, rose to $140.2 billion. CORPORATE/OTHER AND INVESTMENT ACTIVITIES The loss from CORPORATE/OTHER was 59% higher than in the prior year period. The loss included $36 million in after-tax expenses incurred related to performance vesting options which were issued by Citicorp prior to its merger with Travelers, and which have vested as certain pre-determined price levels have been met. Also included were higher technology costs associated with Year 2000 remediation, and higher treasury costs. Income from INVESTMENT ACTIVITIES, including gains on investments, rose $198 million from the prior year's unusually low level, to $213 million, reflecting strong equity markets. # # # 6 In addition, the Board of Directors of Citigroup approved the increase in the quarterly dividend on Citigroup's common stock from 14 cents a share to 16 cents a share, payable on February 25, 2000 to stockholders of record on February 7, 2000. # # # Forward-Looking Statements Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Citigroup's actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "intend," "estimate," "target," "may increase," "may fluctuate," "may result in," "are projected," and similar expressions. These forward-looking statements involve risks and uncertainties including, but not limited to, the following: general economic conditions, including the performance of financial markets and interest rates; the ability of Citigroup to take advantage of financial modernization legislation and to continue to expand its business geographically, as well as in new areas such as the Internet; the ability of Citigroup to achieve future profit growth and to increase revenues from cross marketing efforts; ability of Citigroup generally to achieve anticipated levels of operational efficiencies and expense savings. Readers also are directed to other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. # # # A financial summary follows. Additional financial, statistical and business-related information, as well as business and segment trends, is included in the Financial Supplement. 7 CITIGROUP SEGMENT INCOME FOURTH QUARTER % FULL YEAR % (In Millions of Dollars) 1999 1998 Change 1999 1998 Change GLOBAL CONSUMER Citibanking North America $ 122 $ 18 578 $ 414 $ 107 287 Mortgage Banking 57 55 4 231 212 9 Cards 325 293 11 1,172 808 45 CitiFinancial 108 63 71 392 222 77 Banking/Lending 612 429 43 2,209 1,349 64 Travelers Life & Annuity 135 124 9 623 493 26 Primerica Financial Services 115 103 12 452 400 13 Personal Lines 94 88 7 279 319 (13) Insurance 344 315 9 1,354 1,212 12 Total North America 956 744 28 3,563 2,561 39 Europe, Middle East, and Africa 90 59 53 327 225 45 Asia Pacific 118 116 2 443 383 16 Latin America 83 38 118 228 160 43 Total International 291 213 37 998 768 30 e-Citi (49) (42) (17) (179) (141) (27) Other Consumer (24) (43) 44 (86) (77) (12) TOTAL GLOBAL CONSUMER 1,174 872 35 4,296 3,111 38 GLOBAL CORPORATE AND INVESTMENT BANK Salomon Smith Barney 664 13 NM 2,354 408 477 Emerging Markets 265 237 12 1,190 748 59 Global Relationship Banking 176 102 73 686 490 40 Total Global Corporate Bank 441 339 30 1,876 1,238 52 Commercial Lines 200 201 -- 845 723 17 TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,305 553 136 5,075 2,369 114 GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING SSB Citi Asset Management Group 78 52 50 324 256 27 Global Private Bank 75 62 21 278 251 11 TOTAL GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING 153 114 34 602 507 19 CORPORATE/OTHER (240) (151) (59) (686) (478) (44) INVESTMENT ACTIVITIES 213 15 NM 660 833 (21) CORE INCOME 2,605 1,403 86 9,947 6,342 57 Restructuring-Related Items -- After Tax (A) 17 (726) 102 47 (535) 109 Cumulative Effect of Accounting Changes (B) -- -- -- (127) -- NM NET INCOME $ 2,622 $ 677 287 $ 9,867 $ 5,807 70 DILUTED EARNINGS PER SHARE: CORE INCOME $ 0.75 $ 0.40 88 $ 2.85 $ 1.77 61 NET INCOME $ 0.75 $ 0.19 295 $ 2.83 $ 1.62 75 8 (A) The restructuring-related items in the 1999 fourth quarter included $51 million of charges, $8 million of accelerated depreciation, and a $76 million credit for reversal of prior charges. The 1999 full year included $82 million of charges, $113 million of accelerated depreciation, and a $242 million credit for reversal of prior charges. The 1998 fourth quarter included the restructuring charge of $703 million, merger-related expenses of $65 million, and credits for reversals of 1997 restructuring charges of $42 million. The 1998 full year also included a $191 million credit for reversal of 1997 charges. (B) Refers to adoption of Statement of Position "SOP" 97-3, "Accounting by Insurance and Other Enterprises for Insurance-Related Assessments" of ($135) million; adoption of SOP 98-7, "Deposit Accounting: Accounting for Insurance and Reinsurance Contracts That Do Not Transfer Insurance Risk" of $23 million; and the adoption of SOP 98-5, "Reporting on the Costs of Start-Up Activities" of ($15) million. NM Not meaningful. # # # 9 CITIGROUP - 1999 FOURTH QUARTER FINANCIAL DATA SUPPLEMENT [CITIGROUP LOGO] PAGE NUMBER ----------- CITIGROUP CONSOLIDATED Financial Summary 1 Segment Net Revenues 2 Segment Core Income 3 Segment Detail GLOBAL CONSUMER: BANKING / LENDING Citibanking North America 4 Mortgage Banking 5 Cards 6 CitiFinancial 7 INSURANCE Travelers Life & Annuity 8 & 9 Primerica Financial Services 10 Travelers Property Casualty - Personal Lines 11 INTERNATIONAL Europe, Middle East & Africa 12 Asia Pacific 12 Latin America 13 e-CITI 14 OTHER CONSUMER 14 GLOBAL CORPORATE AND INVESTMENT BANK: Salomon Smith Barney 15 & 16 Total Global Corporate Bank 17 Emerging Markets 17 Global Relationship Banking 17 Travelers Property Casualty - Commercial Lines 18 GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING: SSB Citi Asset Management Group 19 Global Private Bank 19 INVESTMENT ACTIVITIES 20 CITIGROUP SUPPLEMENTAL DETAIL Consolidated Statement of Income 21 Earnings Analysis - Managed Basis 22 Consumer Loan Delinquency Amounts, Net Credit Losses and Ratios 23 Details of Credit Loss Experience 24 Cash Basis & Renegotiated Loans, Other Real Estate Owned and Assets Pending Disposition 25 Managed Assets and Insurance Investments 26 Insurance Investment Portfolio 26 CITICORP SUPPLEMENTAL DATA 27 10 CITIGROUP -- FINANCIAL SUMMARY (In millions of dollars, except per share amounts) [CITIGROUP LOGO] CITIGROUP, THE MOST GLOBAL FINANCIAL SERVICES COMPANY, PROVIDES SOME 100 MILLION CONSUMERS, CORPORATIONS, GOVERNMENTS AND INSTITUTIONS IN OVER 100 COUNTRIES WITH A BROAD RANGE OF FINANCIAL PRODUCTS AND SERVICES. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1998 1998 1998 1998 1999 1999 1999 ------- ------- ------- ------- ------- ------- ------- CORE INCOME $ 2,161 $ 2,049 $ 729 $ 1,403 $ 2,415 $ 2,477 $ 2,450 Restructuring / Merger Items -- 191 -- (726) 74 (29) (15) Cumulative Effect of Accounting Changes -- -- -- -- (127) -- -- ------- ------- ------- ------- ------- ------- ------- NET INCOME $ 2,161 $ 2,240 $ 729 $ 677 $ 2,362 $ 2,448 $ 2,435 ======= ======= ======= ======= ======= ======= ======= BASIC EARNINGS PER SHARE: CORE INCOME $ 0.62 $ 0.59 $ 0.20 $ 0.41 $ 0.71 $ 0.73 $ 0.72 ======= ======= ======= ======= ======= ======= ======= NET INCOME $ 0.62 $ 0.65 $ 0.20 $ 0.19 $ 0.70 $ 0.72 $ 0.72 ======= ======= ======= ======= ======= ======= ======= WEIGHTED AVERAGE COMMON SHARES APPLICABLE TO BASIC EPS 3,365.0 3,366.0 3,372.5 3,350.1 3,340.2 3,332.7 3,332.0 ======= ======= ======= ======= ======= ======= ======= PREFERRED DIVIDENDS - BASIC $ 63 $ 58 $ 50 $ 45 $ 40 $ 38 $ 38 ======= ======= ======= ======= ======= ======= ======= DILUTED EARNINGS PER SHARE: CORE INCOME $ 0.60 $ 0.57 $ 0.20 $ 0.40 $ 0.69 $ 0.71 $ 0.70 ======= ======= ======= ======= ======= ======= ======= NET INCOME $ 0.60 $ 0.63 $ 0.20 $ 0.19 $ 0.68 $ 0.70 $ 0.70 ======= ======= ======= ======= ======= ======= ======= ADJUSTED WEIGHTED AVERAGE COMMON SHARES APPLICABLE TO DILUTED EPS 3,492.9 3,496.4 3,481.1 3,435.5 3,440.0 3,450.3 3,440.2 ======= ======= ======= ======= ======= ======= ======= PREFERRED DIVIDENDS - DILUTED $ 57 $ 52 $ 44 $ 39 $ 37 $ 35 $ 34 ======= ======= ======= ======= ======= ======= ======= COMMON SHARES OUTSTANDING, AT PERIOD END 3,421.2 3,420.8 3,413.3 3,387.0 3,380.3 3,376.7 3,366.8 ======= ======= ======= ======= ======= ======= ======= TIER 1 CAPITAL RATIO 8.38% 8.46% 8.69% 8.68% 8.86% 9.37% 9.58% ======= ======= ======= ======= ======= ======= ======= TOTAL CAPITAL RATIO 10.97% 11.00% 11.28% 11.43% 11.56% 12.12% 12.34% ======= ======= ======= ======= ======= ======= ======= LEVERAGE RATIO 5.67% 5.65% 5.73% 6.03% 6.24% 6.38% 6.62% ======= ======= ======= ======= ======= ======= ======= TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 738.8 $ 750.8 $ 701.3 $ 668.6 $ 690.6 $ 689.6 $ 687.5 ======= ======= ======= ======= ======= ======= ======= STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 42.8 $ 43.9 $ 43.1 $ 42.7 $ 44.0 $ 45.2 $ 46.7 ======= ======= ======= ======= ======= ======= ======= STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS) $ 46.4 $ 47.7 $ 46.9 $ 47.0 $ 48.9 $ 50.2 $ 51.6 ======= ======= ======= ======= ======= ======= ======= BOOK VALUE PER SHARE, AT PERIOD END $ 11.63 $ 12.04 $ 11.95 $ 11.91 $ 12.38 $ 12.77 $ 13.26 ======= ======= ======= ======= ======= ======= ======= RETURN ON COMMON EQUITY (NET INCOME) 22.0% 21.8% 6.6% 6.2% 23.0% 22.8% 21.8% ======= ======= ======= ======= ======= ======= ======= RETURN ON COMMON EQUITY (CORE INCOME) 21.4% 19.4% 6.5% 13.0% 23.6% 23.1% 21.9% ======= ======= ======= ======= ======= ======= ======= RETURN ON COMMON EQUITY (CORE INCOME), EXCLUDING FAS 115 22.4% 20.2% 6.7% 13.4% 24.3% 24.1% 22.6% ======= ======= ======= ======= ======= ======= ======= 4Q 1999 VS. YTD 1999 VS. 4Q 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ 1999 (DECREASE) 1998 1999 (DECREASE) ------- --- --------- --------- -- CORE INCOME $ 2,605 86% $ 6,342 $ 9,947 57% Restructuring / Merger Items 17 (535) 47 Cumulative Effect of Accounting Changes -- -- (127) ------- --------- --------- NET INCOME $ 2,622 287% $ 5,807 $ 9,867 70% ======= ========= ========= BASIC EARNINGS PER SHARE: CORE INCOME $ 0.77 88% $ 1.82 $ 2.94 62% ======= ========= ========= NET INCOME $ 0.78 311% $ 1.66 $ 2.91 75% ======= ========= ========= WEIGHTED AVERAGE COMMON SHARES APPLICABLE TO BASIC EPS 3,330.9 3,363.6 3,333.9 ======= ========= ========= PREFERRED DIVIDENDS - BASIC $ 33 $ 216 $ 149 ======= ========= ========= DILUTED EARNINGS PER SHARE: CORE INCOME $ 0.75 88% $ 1.77 $ 2.85 61% ======= ========= ========= NET INCOME $ 0.75 295% $ 1.62 $ 2.83 75% ======= ========= ========= ADJUSTED WEIGHTED AVERAGE COMMON SHARES APPLICABLE TO DILUTED EPS 3,443.6 3,472.8 3,443.5 ======= ========= ========= PREFERRED DIVIDENDS - DILUTED $ 33 $ 192 $ 139 ======= ========= ========= COMMON SHARES OUTSTANDING, AT PERIOD END 3,367.5 3,387.0 3,367.5 ======= ========= ========= TIER 1 CAPITAL RATIO 9.6%* 8.68% 9.6%* ======= ========= ========= TOTAL CAPITAL RATIO 12.4%* 11.43% 12.4%* ======= ========= ========= LEVERAGE RATIO 6.7%* 6.03% 6.7%* ======= ========= ========= TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 718.1* $ 668.6 $ 718.1* ======= ========= ========= STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 49.7* $ 42.7 $ 49.7* ======= ========= ========= STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS) $ 54.6* $ 47.0 $ 54.6* ======= ========= ========= BOOK VALUE PER SHARE, AT PERIOD END $ 14.18* $ 11.91 $ 14.18* ======= ========= ========= RETURN ON COMMON EQUITY (NET INCOME) 22.4%* 14.0% 22.5%* ======= ========= ========= RETURN ON COMMON EQUITY (CORE INCOME) 22.3%* 14.9% 22.7%* ======= ========= ========= RETURN ON COMMON EQUITY (CORE INCOME), EXCLUDING FAS 115 23.3%* 15.5% 23.5%* ======= ========= ========= * Preliminary 11 CITIGROUP -- SEGMENT NET REVENUES (In millions of dollars) [CITIGROUP LOGO] 1Q 2Q 3Q 4Q 1Q 2Q 1998 1998 1998 1998 1999 1999 -------- -------- -------- -------- -------- -------- GLOBAL CONSUMER: BANKING / LENDING Citibanking North America $ 478 $ 521 $ 487 $ 488 $ 507 $ 517 Mortgage Banking 154 152 160 153 169 183 Cards 1,402 1,810 1,915 2,025 1,975 1,989 CitiFinancial 294 310 326 345 361 396 -------- -------- -------- -------- -------- -------- Total Banking / Lending 2,328 2,793 2,888 3,011 3,012 3,085 INSURANCE Travelers Life and Annuity 698 765 716 833 771 867 Primerica Financial Services 400 420 413 421 432 443 Personal Lines 868 899 924 975 983 1,005 -------- -------- -------- -------- -------- -------- Total Insurance 1,966 2,084 2,053 2,229 2,186 2,315 INTERNATIONAL Europe, Middle East and Africa 499 525 543 576 563 565 Asia Pacific 422 457 459 511 518 543 Latin America 354 369 431 444 466 499 -------- -------- -------- -------- -------- -------- Total International 1,275 1,351 1,433 1,531 1,547 1,607 e-CITI 30 34 38 47 54 55 OTHER 26 22 24 28 30 24 -------- -------- -------- -------- -------- -------- TOTAL GLOBAL CONSUMER 5,625 6,284 6,436 6,846 6,829 7,086 -------- -------- -------- -------- -------- -------- GLOBAL CORPORATE AND INVESTMENT BANK: Salomon Smith Barney 2,918 2,523 685 2,207 3,341 3,269 GLOBAL CORPORATE BANK Emerging Markets 959 974 723 976 1,139 1,092 Global Relationship Banking 989 1,151 827 947 1,090 1,008 -------- -------- -------- -------- -------- -------- Total Global Corporate Bank 1,948 2,125 1,550 1,923 2,229 2,100 Commercial Lines 1,619 1,584 1,604 1,674 1,534 1,558 -------- -------- -------- -------- -------- -------- TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 6,485 6,232 3,839 5,804 7,104 6,927 -------- -------- -------- -------- -------- -------- GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING: SSB Citi Asset Management Group 305 310 318 326 354 357 Global Private Bank 262 283 284 293 272 298 -------- -------- -------- -------- -------- -------- TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 567 593 602 619 626 655 -------- -------- -------- -------- -------- -------- CORPORATE / OTHER (38) (54) (48) 8 (54) 12 INVESTMENT ACTIVITIES 619 491 168 45 153 270 - -------------------------------------------------------------------------------------------------------------------------- TOTAL ADJUSTED NET REVENUES $ 13,258 $ 13,546 $ 10,997 $ 13,322 $ 14,658 $ 14,950 - -------------------------------------------------------------------------------------------------------------------------- 4Q 1999 VS. YTD 1999 VS. 3Q 4Q 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ 1999 1999 (DECREASE) 1998 1999 (DECREASE) -------- -------- -------- -------- -------- -------- GLOBAL CONSUMER: BANKING / LENDING Citibanking North America $ 528 $ 557 14% $ 1,974 $ 2,109 7% Mortgage Banking 199 196 28% 619 747 21% Cards 1,984 2,050 1% 7,152 7,998 12% CitiFinancial 421 441 28% 1,275 1,619 27% -------- ------- -------- -------- Total Banking / Lending 3,132 3,244 8% 11,020 12,473 13% INSURANCE Travelers Life and Annuity 869 887 6% 3,012 3,394 13% Primerica Financial Services 444 456 8% 1,654 1,775 7% Personal Lines 1,018 1,037 6% 3,666 4,043 10% -------- ------- -------- -------- Total Insurance 2,331 2,380 7% 8,332 9,212 11% INTERNATIONAL Europe, Middle East and Africa 608 599 4% 2,143 2,335 9% Asia Pacific 580 607 19% 1,849 2,248 22% Latin America 504 514 16% 1,598 1,983 24% -------- ------- -------- -------- Total International 1,692 1,720 12% 5,590 6,566 17% e-CITI 57 67 43% 149 233 56% OTHER 14 (1) (104%) 100 67 (33%) -------- ------- -------- -------- TOTAL GLOBAL CONSUMER 7,226 7,410 8% 25,191 28,551 13% -------- ------- -------- -------- GLOBAL CORPORATE AND INVESTMENT BANK: Salomon Smith Barney 2,791 3,279 49% 8,333 12,680 52% GLOBAL CORPORATE BANK Emerging Markets 1,051 1,045 7% 3,632 4,327 19% Global Relationship Banking 985 1,000 6% 3,914 4,083 4% -------- ------- -------- -------- Total Global Corporate Bank 2,036 2,045 6% 7,546 8,410 11% Commercial Lines 1,578 1,595 (5%) 6,481 6,265 (3%) -------- ------- -------- -------- TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 6,405 6,919 19% 22,360 27,355 22% -------- ------- -------- -------- GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING: SSB Citi Asset Management Group 367 407 25% 1,259 1,485 18% Global Private Bank 302 329 12% 1,122 1,201 7% -------- ------- -------- -------- TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 669 736 19% 2,381 2,686 13% -------- ------- -------- -------- CORPORATE / OTHER (38) (96) NM (132) (176) (33%) INVESTMENT ACTIVITIES 311 356 691% 1,323 1,090 (18%) - ------------------------------------------------------------------ --------------------- TOTAL ADJUSTED NET REVENUES $ 14,573 $ 15,325 15% $ 51,123 $ 59,506 16% - ------------------------------------------------------------------ --------------------- NM Not meaningful 12 CITIGROUP -- SEGMENT CORE INCOME (In millions of dollars) [CITIGROUP LOGO] 1Q 2Q 3Q 4Q 1Q 2Q 1998 1998 1998 1998 1999 1999 ------- ------- ------- ------- ------- ------- GLOBAL CONSUMER: BANKING / LENDING Citibanking North America $ 25 $ 39 $ 25 $ 18 $ 75 $ 106 Mortgage Banking 50 50 57 55 60 53 Cards 156 136 223 293 275 275 CitiFinancial 48 49 62 63 71 78 ------- ------- ------- ------- ------- ------- Total Banking / Lending 279 274 367 429 481 512 INSURANCE Travelers Life and Annuity 119 127 123 124 147 173 Primerica Financial Services 95 103 99 103 110 113 Personal Lines 82 81 68 88 83 79 ------- ------- ------- ------- ------- ------- Total Insurance 296 311 290 315 340 365 INTERNATIONAL Europe, Middle East and Africa 49 53 64 59 67 72 Asia Pacific 82 85 100 116 101 107 Latin America 43 37 42 38 47 43 ------- ------- ------- ------- ------- ------- Total International 174 175 206 213 215 222 e-CITI (30) (36) (33) (42) (36) (43) OTHER -- (10) (24) (43) (19) (30) ------- ------- ------- ------- ------- ------- TOTAL GLOBAL CONSUMER 719 714 806 872 981 1,026 ------- ------- ------- ------- ------- ------- GLOBAL CORPORATE AND INVESTMENT BANK: Salomon Smith Barney 443 348 (396) 13 648 610 GLOBAL CORPORATE BANK Emerging Markets 262 242 7 237 323 294 Global Relationship Banking 159 238 (9) 102 198 159 ------- ------- ------- ------- ------- ------- Total Global Corporate Bank 421 480 (2) 339 521 453 Commercial Lines 171 174 177 201 189 201 ------- ------- ------- ------- ------- ------- TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,035 1,002 (221) 553 1,358 1,264 ------- ------- ------- ------- ------- ------- GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING: SSB Citi Asset Management Group 69 68 67 52 80 84 Global Private Bank 58 65 66 62 57 73 ------- ------- ------- ------- ------- ------- TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 127 133 133 114 137 157 ------- ------- ------- ------- ------- ------- CORPORATE / OTHER (122) (116) (89) (151) (151) (133) INVESTMENT ACTIVITIES 402 316 100 15 90 163 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL CORE INCOME $ 2,161 $ 2,049 $ 729 $ 1,403 $ 2,415 $ 2,477 - ------------------------------------------------------------------------------------------------------------------------------------ 4Q 1999 VS. YTD 1999 VS. 3Q 4Q 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ 1999 1999 (DECREASE) 1998 1999 (DECREASE) ------- ------- ------- ------- ------- ------- GLOBAL CONSUMER: BANKING / LENDING Citibanking North America $ 111 $ 122 578% $ 107 $ 414 287% Mortgage Banking 61 57 4% 212 231 9% Cards 297 325 11% 808 1,172 45% CitiFinancial 135 108 71% 222 392 77% ------- ------ ------- ------- Total Banking / Lending 604 612 43% 1,349 2,209 64% INSURANCE Travelers Life and Annuity 168 135 9% 493 623 26% Primerica Financial Services 114 115 12% 400 452 13% Personal Lines 23 94 7% 319 279 (13%) ------- ------ ------- ------- Total Insurance 305 344 9% 1,212 1,354 12% INTERNATIONAL Europe, Middle East and Africa 98 90 53% 225 327 45% Asia Pacific 117 118 2% 383 443 16% Latin America 55 83 118% 160 228 43% ------- ------ ------- ------- Total International 270 291 37% 768 998 30% e-CITI (51) (49) (17%) (141) (179) (27%) OTHER (13) (24) 44% (77) (86) (12%) ------- ------ ------- ------- TOTAL GLOBAL CONSUMER 1,115 1,174 35% 3,111 4,296 38% ------- ------ ------- ------- GLOBAL CORPORATE AND INVESTMENT BANK: Salomon Smith Barney 432 664 NM 408 2,354 477% GLOBAL CORPORATE BANK Emerging Markets 308 265 12% 748 1,190 59% Global Relationship Banking 153 176 73% 490 686 40% ------- ------ ------- ------- Total Global Corporate Bank 461 441 30% 1,238 1,876 52% Commercial Lines 255 200 -- 723 845 17% ------- ------ ------- ------- TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,148 1,305 136% 2,369 5,075 114% ------- ------ ------- ------- GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING: SSB Citi Asset Management Group 82 78 50% 256 324 27% Global Private Bank 73 75 21% 251 278 11% ------- ------ ------- ------- TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 155 153 34% 507 602 19% ------- ------ ------- ------- CORPORATE / OTHER (162) (240) (59%) (478) (686) (44%) INVESTMENT ACTIVITIES 194 213 NM 833 660 (21%) - ------------------------------------------------------------------ ------------------- TOTAL CORE INCOME $ 2,450 $ 2,605 86% $ 6,342 $ 9,947 57% - ------------------------------------------------------------------ ------------------- NM - Not meaningful 13 GLOBAL CONSUMER - BANKING/LENDING [CITIGROUP LOGO] CITIBANKING NORTH AMERICA (In millions of dollars) 1Q 2Q 3Q 4Q 1Q 2Q 1998 1998 1998 1998 1999 1999 ------ ------ ------ ------ ------ ------ Total Revenues, Net of Interest Expense $ 478 $ 521 $ 487 $ 488 $ 507 $ 517 Adjusted Operating Expenses 407 427 410 428 353 320 Provision for Loan Losses 25 25 26 24 23 15 ------ ------ ------ ------ ------ ------ Core Income Before Taxes 46 69 51 36 131 182 Income Taxes 21 30 26 18 56 76 ------ ------ ------ ------ ------ ------ Core Income $ 25 $ 39 $ 25 $ 18 $ 75 $ 106 ====== ====== ====== ====== ====== ====== Average Assets (in billions of dollars) $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 ====== ====== ====== ====== ====== ====== Return on Assets 1.01% 1.56% 0.99% 0.71% 3.04% 4.25% ====== ====== ====== ====== ====== ====== Average Loans (in billions of dollars) $ 8.0 $ 8.0 $ 7.9 $ 7.8 $ 7.7 $ 7.7 Average Customer Deposits (in billions of dollars) $ 38.9 $ 39.4 $ 39.7 $ 40.4 $ 41.6 $ 42.2 Accounts (in millions) 5.6 5.7 5.8 5.8 5.9 6.0 Net Credit Loss Ratio 1.33% 1.32% 1.35% 1.38% 1.27% 1.20% Loans 90+Days Past Due: In millions of dollars $ 118 $ 111 $ 109 $ 93 $ 103 $ 92 % 1.45% 1.36% 1.25% 1.20% 1.34% 1.20% 4Q 1999 VS. YTD 1999 VS. 3Q 4Q 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ 1999 1999 (DECREASE) 1998 1999 (DECREASE) ------ ------ ------ ------ ------ ------ Total Revenues, Net of Interest Expense $ 528 $ 557 14% $1,974 $2,109 7% Adjusted Operating Expenses 328 337 (21%) 1,672 1,338 (20%) Provision for Loan Losses 11 15 (38%) 100 64 (36%) ------ ------ ------ ------ Core Income Before Taxes 189 205 469% 202 707 250% Income Taxes 78 83 361% 95 293 208% ------ ------ ------ ------ Core Income $ 111 $ 122 578% $ 107 $ 414 287% ====== ====== ====== ====== Average Assets (in billions of dollars) $ 9 $ 9 (10%) $ 10 $ 10 -- ====== ====== ====== ====== Return on Assets 4.89% 5.38% 1.07% 4.14% ====== ====== ====== ====== Average Loans (in billions of dollars) $ 7.5 $ 7.4 (5%) $ 7.9 $ 7.6 (4%) Average Customer Deposits (in billions of dollars) $ 42.2 $ 42.4 5% $ 39.6 $ 42.1 6% Accounts (in millions) 6.2 6.3 9% Net Credit Loss Ratio 1.03% 1.23% Loans 90+Days Past Due: In millions of dollars $ 64 $ 55 (41%) % 0.87% 0.75% 14 GLOBAL CONSUMER - BANKING/LENDING [CITIGROUP LOGO] MORTGAGE BANKING (1) (In millions of dollars) 1Q 2Q 3Q 4Q 1Q 2Q 1998 1998 1998 1998 1999 1999 ----- ----- ----- ----- ----- ----- Total Revenues, Net of Interest Expense $ 154 $ 152 $ 160 $ 153 $ 169 $ 183 Adjusted Operating Expenses 59 61 62 60 59 82 Provision for Loan Losses 13 9 3 (5) 3 5 ----- ----- ----- ----- ----- ----- Core Income Before Taxes and Minority Interest 82 82 95 98 107 96 Income Taxes 32 32 38 38 42 38 Minority Interest, Net of Tax -- -- -- 5 5 5 ----- ----- ----- ----- ----- ----- Core Income $ 50 $ 50 $ 57 $ 55 $ 60 $ 53 ===== ===== ===== ===== ===== ===== Average Assets (in billions of dollars) $ 25 $ 25 $ 25 $ 26 $ 28 $ 29 ===== ===== ===== ===== ===== ===== Return on Assets 0.81% 0.80% 0.90% 0.84% 0.87% 0.73% ===== ===== ===== ===== ===== ===== Accounts (in millions) 2.5 2.5 2.7 2.8 2.8 3.0 Average Loans (in billions of dollars) (2) $23.5 $23.7 $24.0 $24.6 $26.6 $27.3 Mortgage Originations (in billions of dollars) $ 2.9 $ 4.1 $ 4.3 $ 5.1 $ 3.8 $ 4.9 Net Credit Loss Ratio 0.42% 0.31% 0.29% 0.27% 0.20% 0.17% Loans 90+ Days Past Due: $ 688 $ 634 $ 623 $ 625 $ 610 $ 575 In millions of dollars 2.91% 2.67% 2.69% 2.44% 2.29% 2.09% % 4Q 1999 VS. YTD 1999 VS. 3Q 4Q 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ 1999 1999 (DECREASE) 1998 1999 (DECREASE) ----- ----- ----- ----- ----- ----- Total Revenues, Net of Interest Expense $ 199 $ 196 28% $ 619 $ 747 21% Adjusted Operating Expenses 90 89 48% 242 320 32% Provision for Loan Losses 2 7 240% 20 17 (15%) ----- ----- ----- ----- Core Income Before Taxes and Minority Interest 107 100 2% 357 410 15% Income Taxes 42 38 -- 140 160 14% Minority Interest, Net of Tax 4 5 -- 5 19 280% ----- ----- ----- ----- Core Income $ 61 $ 57 4% $ 212 $ 231 9% ===== ===== ===== ===== Average Assets (in billions of dollars) $ 29 $ 31 19% $ 25 $ 29 16% ===== ===== ===== ===== Return on Assets 0.83% 0.73% 0.85% 0.80% ===== ===== ===== ===== Accounts (in millions) 3.2 3.4 21% Average Loans (in billions of dollars) (2) $27.1 $28.6 16% $24.0 $27.4 14% Mortgage Originations (in billions of dollars) $ 4.7 $ 4.9 (4%) $16.4 $18.3 12% Net Credit Loss Ratio 0.12% 0.15% Loans 90+ Days Past Due: $ 629 $ 696 11% In millions of dollars 2.28% 2.31% % (1) Includes Student Loans. (2) Includes loans held for sale. 15 GLOBAL CONSUMER - BANKING/LENDING [CITIGROUP LOGO] CARDS (1) (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 ----------------- ------------------ ------------------ ----------------- Adjusted Revenues, Net of Interest Expense $ 1,402 $ 1,810 $ 1,915 $ 2,025 Adjusted Operating Expenses 430 703 714 748 Adjusted Provision for Loan Losses (2) 722 888 846 808 ----------------- ------------------ ------------------ ----------------- Core Income Before Taxes 250 219 355 469 Income Taxes 94 83 132 176 ----------------- ------------------ ------------------ ----------------- Core Income $ 156 $ 136 $ 223 $ 293 ================= ================== ================== ================= Managed Average Assets (in billions of dollars) $ 50 $ 66 $ 68 $ 71 ================= ================== ================== ================= Return on Managed Assets 1.27% 0.83% 1.30% 1.64% ================= ================== ================== ================= U.S. BANKCARDS DATA : (in billions of dollars) Risk Adjusted Margin (in millions of dollars)(3) $ 614 $ 841 $ 994 $ 1,126 % of Average Managed Loans 5.31% 5.58% 6.36% 6.86% End of Period Managed Receivables $ 46.8 $ 62.0 $ 63.8 $ 69.6 Total Accounts (in millions) 25.6 39.4 39.7 40.5 Total Sales $ 25.3 $ 35.4 $ 37.7 $ 42.2 END OF PERIOD LOANS: On Balance Sheet $ 16.5 $ 17.3 $ 19.8 $ 21.9 Securitized 27.8 41.5 40.6 44.3 Held for Sale 2.0 2.5 2.6 2.9 ----------------- ------------------ ------------------ ----------------- Total $ 46.3 $ 61.3 $ 63.0 $ 69.1 ================= ================== ================== ================= AVERAGE LOANS: On Balance Sheet $ 17.3 $ 21.0 $ 19.3 $ 20.9 Securitized 27.6 37.0 40.2 41.5 Held for Sale 2.0 2.5 2.5 2.7 ----------------- ------------------ ------------------ ----------------- Total $ 46.9 $ 60.5 $ 62.0 $ 65.1 ================= ================== ================== ================= NET CREDIT LOSSES (in millions of dollars): On Balance Sheet $ 214 $ 271 $ 229 $ 222 Securitized 431 544 542 536 Held for Sale 31 37 34 32 ----------------- ------------------ ------------------ ----------------- Total $ 676 $ 852 $ 805 $ 790 ================= ================== ================== ================= Coincident Net Credit Loss Ratio 5.85% 5.65% 5.15% 4.82% 12 Month Lagged Net Credit Loss Ratio (4) 5.98% 5.92% 5.43% 5.30% LOANS 90+ DAYS PAST DUE: In millions of dollars $ 855 $ 956 $ 939 $ 1,001 % 1.85% 1.56% 1.49% 1.45% 1Q 2Q 3Q 4Q 1999 1999 1999 1999 ------------------ ------------------ ----------------- ----------------- Adjusted Revenues, Net of Interest Expense $ 1,975 $ 1,989 $ 1,984 $ 2,050 Adjusted Operating Expenses 722 724 707 733 Adjusted Provision for Loan Losses (2) 818 832 804 805 ------------------ ------------------ ----------------- ----------------- Core Income Before Taxes 435 433 473 512 Income Taxes 160 158 176 187 ------------------ ------------------ ----------------- ----------------- Core Income $ 275 $ 275 $ 297 $ 325 ================== ================== ================= ================= Managed Average Assets (in billions of dollars) $ 73 $ 75 $ 76 $ 76 ================== ================== ================= ================= Return on Managed Assets 1.53% 1.47% 1.55% 1.70% ================== ================== ================= ================= U.S. BANKCARDS DATA : (in billions of dollars) Risk Adjusted Margin (in millions of dollars)(3) $1,067 $1,070 $1,097 $1,160 % of Average Managed Loans 6.42% 6.18% 6.24% 6.57% End of Period Managed Receivables $ 69.4 $ 70.3 $ 70.7 $ 74.2 Total Accounts (in millions) 41.4 41.1 40.6 40.6 Total Sales $ 36.8 $ 40.8 $ 40.9 $ 43.8 END OF PERIOD LOANS: On Balance Sheet $ 19.4 $ 20.0 $ 19.1 $ 22.6 Securitized 46.7 47.4 48.5 49.0 Held for Sale 2.9 2.8 2.5 2.1 ------------------ ------------------ ----------------- ----------------- Total $ 69.0 $ 70.2 $ 70.1 $ 73.7 ================== ================== ================= ================= AVERAGE LOANS: On Balance Sheet $ 20.2 $ 20.0 $ 19.3 $ 19.5 Securitized 44.3 46.7 47.9 48.6 Held for Sale 2.9 2.8 2.5 2.0 ------------------ ------------------ ----------------- ----------------- Total $ 67.4 $ 69.5 $ 69.7 $ 70.1 ================== ================== ================= ================= NET CREDIT LOSSES (in millions of dollars): On Balance Sheet $ 196 $ 233 $ 221 $ 224 Securitized 556 541 525 537 Held for Sale 32 29 27 22 ------------------ ------------------ ----------------- ----------------- Total $ 784 $ 803 $ 773 $ 783 ================== ================== ================= ================= Coincident Net Credit Loss Ratio 4.72% 4.63% 4.40% 4.43% 12 Month Lagged Net Credit Loss Ratio (4) 5.34% 5.12% 4.77% 4.59% LOANS 90+ DAYS PAST DUE: In millions of dollars $ 1,007 $ 954 $ 995 $ 1,061 % 1.46% 1.36% 1.42% 1.44% 4Q 1999 VS. YTD 1999 VS. 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ (DECREASE) 1998 1999 (DECREASE) -------------------------- --------- --------- ------------------ Adjusted Revenues, Net of Interest Expense 1% $ 7,152 $ 7,998 12% Adjusted Operating Expenses (2%) 2,595 2,886 11% Adjusted Provision for Loan Losses (2) - 3,264 3,259 - -------- ------- Core Income Before Taxes 9% 1,293 1,853 43% Income Taxes 6% 485 681 40% -------- ------- Core Income 11% $ 808 $ 1,172 45% ======== ======= Managed Average Assets (in billions of dollars) 7% $ 64 $ 75 17% ======== ======= Return on Managed Assets 1.26% 1.56% ======== ======= U.S. BANKCARDS DATA : (in billions of dollars) Risk Adjusted Margin (in millions of dollars)(3) 3% % of Average Managed Loans End of Period Managed Receivables 7% Total Accounts (in millions) - Total Sales 4% END OF PERIOD LOANS: On Balance Sheet 3% Securitized 11% Held for Sale (28%) Total 7% AVERAGE LOANS: On Balance Sheet (7%) Securitized 17% Held for Sale (26%) Total 8% NET CREDIT LOSSES (in millions of dollars): On Balance Sheet 1% Securitized - Held for Sale (31%) Total (1%) Coincident Net Credit Loss Ratio 12 Month Lagged Net Credit Loss Ratio (4) LOANS 90+ DAYS PAST DUE: In millions of dollars 6% % (1) Includes U.S. Bankcards, Diners Club and Canada bankcards. The acquisition of the Universal Card (UCS) was completed in the 1998 second quarter. (2) On a managed basis. (3) Risk Adjusted Margin is adjusted revenues less net credit losses. (4) Adjusted for acquisitions. 16 GLOBAL CONSUMER - BANKING/LENDING [CITIGROUP LOGO] CITIFINANCIAL (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 ---------------- ---------------- ------------------ ------------------ REVENUES, NET OF INTEREST EXPENSE * $ 294 $ 310 $ 326 $ 345 CORE INCOME $ 48 $ 49 $ 62 $ 63 NET RECEIVABLES: Real estate-secured loans (1) $ 5,324.7 $ 5,673.4 $ 6,084.8 $ 6,659.5 Personal loans (2) 3,868.9 4,007.4 4,134.3 4,275.2 Sales finance and other 866.3 893.7 936.4 990.8 ---------------- ---------------- ------------------ ------------------ Consumer finance receivables, net of unearned finance charges 10,059.9 10,574.5 11,155.5 11,925.5 Accrued interest receivable 75.8 79.1 87.3 99.2 Allowance for credit losses (294.6) (317.3) (334.4) (369.7) ---------------- ---------------- ------------------ ------------------ Consumer finance receivables, net $ 9,841.1 $ 10,336.3 $ 10,908.4 $ 11,655.0 ================ ================ ================== ================== Number of offices 1,023 1,005 993 980 Average yield 14.91% 14.94% 14.93% 14.74% Average net interest margin 8.34% 8.41% 8.46% 8.53% Net credit loss ratio 2.93% 2.78% 2.61% 2.67% Reserves as % of net receivables 2.93% 3.00% 3.00% 3.10% Loans 90+ Days Past Due: In millions of dollars 143 145 162 172 % 1.42% 1.37% 1.45% 1.44% (1) Includes fully secured $.M.A.R.T. receivables, as follows: $ 2,052.8 $ 2,272.8 $ 2,432.1 $ 2,604.6 (2) Includes $.A.F.E. and partially secured $.M.A.R.T. receivables, as follows: $ 359.8 $ 351.3 $ 345.0 $ 345.6 1Q 2Q 3Q 4Q 1999 1999 1999 1999 ------------------ ----------------- ----------------- ------------------ REVENUES, NET OF INTEREST EXPENSE * $ 361 $ 396 $ 421 $ 441 CORE INCOME $ 71 $ 78 $ 135 $ 108 NET RECEIVABLES: Real estate-secured loans (1) $ 7,179.5 $ 7,699.2 $ 8,439.6 $ 9,031.6 Personal loans (2) 4,647.2 4,886.2 5,102.5 5,319.7 Sales finance and other 1,033.8 1,032.1 1,069.7 1,152.0 ------------------ ----------------- ----------------- ------------------ Consumer finance receivables, net of unearned finance charges 12,860.5 13,617.5 14,611.8 15,503.3 Accrued interest receivable 99.3 106.5 121.7 133.2 Allowance for credit losses (388.7) (436.4) (424.1) (407.8) ------------------ ----------------- ----------------- ------------------ Consumer finance receivables, net $ 12,571.1 $ 13,287.6 $ 14,309.4 $ 15,228.7 ================== ================= ================= ================== Number of offices 1,143 1,177 1,173 1,174 Average yield 14.38% 14.48% 14.58% 14.35% Average net interest margin 8.42% 8.58% 8.56% 8.30% Net credit loss ratio 2.38% 2.14% 2.00% 2.19% Reserves as % of net receivables 3.02% 3.20% 2.90% 2.63% Loans 90+ Days Past Due: In millions of dollars 183 172 186 203 % 1.42% 1.26% 1.27% 1.31% (1) Includes fully secured $.M.A.R.T. receivables, as follows: $ 2,817.6 $ 3,117.4 $ 3,415.7 $ 3,766.0 (2) Includes $.A.F.E. and partially secured $.M.A.R.T. receivables, as follows: $ 337.9 $ 334.2 $ 331.2 $ 329.6 4Q 1999 VS. YTD 1999 VS. 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ (DECREASE) 1998 1999 (DECREASE) ----------------- ---------- ---------- ------------------ REVENUES, NET OF INTEREST EXPENSE * 28% $ 1,275 $ 1,619 27% CORE INCOME 71% $ 222 $ 392 77% NET RECEIVABLES: Real estate-secured loans (1) 36% Personal loans (2) 24% Sales finance and other 16% Consumer finance receivables, net of unearned finance charges 30% Accrued interest receivable 34% Allowance for credit losses 10% Consumer finance receivables, net 31% Number of offices 20% Average yield 14.88% 14.45% Average net interest margin 8.44% 8.47% Net credit loss ratio 2.74% 2.18% Reserves as % of net receivables 3.10% 2.63% Loans 90+ Days Past Due: In millions of dollars 18% % (1) Includes fully secured $.M.A.R.T. receivables, as follows: 45% (2) Includes $.A.F.E. and partially secured $.M.A.R.T. receivables, as follows: (5%) * Excludes realized gains on investments 17 GLOBAL CONSUMER - INSURANCE [CITIGROUP LOGO] TRAVELERS LIFE AND ANNUITY - PAGE 1 (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 ------------------ ------------------ ----------------- ------------------ REVENUES, NET OF INTEREST EXPENSE * $ 698 $ 765 $ 716 $ 833 CORE INCOME $ 119 $ 127 $ 123 $ 124 PRE-TAX CONTRIBUTION BY SOURCE: Deferred and payout annuities $ 87.3 $ 89.2 $ 82.1 $ 87.9 Group annuities 31.5 28.3 36.4 24.1 Life and long term care insurance 37.9 39.3 34.6 42.6 Other (includes run-off and return on excess capital) 24.1 37.6 37.6 33.1 ------------------ ------------------ ----------------- ------------------ Total $ 180.8 $ 194.4 $ 190.7 $ 187.7 ================== ================== ================= ================== DEFERRED ANNUITIES: Number of annuities in force (000): Fixed 415.3 408.4 402.6 399.8 Variable 430.7 463.8 496.2 529.6 ------------------ ------------------ ----------------- ------------------ Total 846.0 872.2 898.8 929.4 ================== ================== ================= ================== Number of annuities issued (000): Fixed 5.5 4.8 3.7 4.0 Variable 42.3 42.6 41.4 43.0 ------------------ ------------------ ----------------- ------------------ Total 47.8 47.4 45.1 47.0 ================== ================== ================= ================== Net written premiums & deposits: Fixed $ 264.7 $ 215.6 $ 217.4 $ 210.4 Variable 646.9 679.8 757.5 808.0 ------------------ ------------------ ----------------- ------------------ Total $ 911.6 $ 895.4 $ 974.9 $ 1,018.4 ================== ================== ================= ================== Policyholder account balances & benefit reserves: (1) Fixed $ 7,890.1 $ 7,863.4 $ 7,877.1 $ 7,915.1 Variable 10,401.2 11,148.5 10,601.1 12,951.4 ------------------ ------------------ ----------------- ------------------ Total $ 18,291.3 $ 19,011.9 $ 18,478.2 $ 20,866.5 ================== ================== ================= ================== PAYOUT ANNUITIES: Net written premiums & deposits $ 81.0 $ 106.8 $ 76.1 $ 165.1 Policyholder account balances & benefit reserves $ 4,558.1 $ 4,602.2 $ 4,626.9 $ 4,743.6 GIC AND OTHER ANNUITIES: Net written premiums & deposits (2) $ 778.9 $ 921.6 $ 1,005.4 $ 983.7 Policyholder account balances & benefit reserves: (1) Guaranteed investment contracts $ 2,633.2 $ 3,018.1 $ 3,748.2 $ 4,170.7 Other group annuities 5,040.1 5,052.9 4,962.6 4,929.6 ------------------ ------------------ ----------------- ------------------ Total $ 7,673.3 $ 8,071.0 $ 8,710.8 $ 9,100.3 ================== ================== ================= ================== 1Q 2Q 3Q 4Q 1999 1999 1999 1999 ------------------ ------------------- ------------------ ----------------- REVENUES, NET OF INTEREST EXPENSE * $ 771 $ 867 $ 869 $ 887 CORE INCOME $ 147 $ 173 $ 168 $ 135 PRE-TAX CONTRIBUTION BY SOURCE: Deferred and payout annuities $ 111.7 $ 139.1 $ 126.9 $ 116.4 Group annuities 36.6 43.7 43.2 34.9 Life and long term care insurance 39.8 50.5 43.9 39.8 Other (includes run-off and return on excess capital) 33.0 28.8 39.3 17.4 ------------------ ------------------- ------------------ ----------------- Total $ 221.1 $ 262.1 $ 253.3 $ 208.5 ================== =================== ================== ================= DEFERRED ANNUITIES: Number of annuities in force (000): Fixed 392.4 384.2 378.5 373.1 Variable 560.8 595.4 630.1 655.2 ------------------ ------------------- ------------------ ----------------- Total 953.2 979.6 1,008.6 1,028.3 ================== =================== ================== ================= Number of annuities issued (000): Fixed 3.9 2.9 3.5 4.1 Variable 47.4 49.7 46.6 38.5 ------------------ ------------------- ------------------ ----------------- Total 51.3 52.6 50.1 42.6 ================== =================== ================== ================= Net written premiums & deposits: Fixed $ 194.2 $ 249.7 $ 271.0 $ 292.6 Variable 975.7 1,048.3 1,089.8 1,151.3 ------------------ ------------------- ------------------ ----------------- Total $ 1,169.9 $ 1,298.0 $ 1,360.8 $ 1,443.9 ================== =================== ================== ================= Policyholder account balances & benefit reserves: (1) Fixed $ 7,839.3 $ 7,874.2 $ 7,958.5 $ 7,993.6 Variable 14,172.9 15,770.8 15,897.0 19,310.6 ------------------ ------------------- ------------------ ----------------- Total $ 22,012.2 $ 23,645.0 $ 23,855.5 $ 27,304.2 ================== =================== ================== ================= PAYOUT ANNUITIES: Net written premiums & deposits $ 88.0 $ 114.8 $ 110.1 $ 135.5 Policyholder account balances & benefit reserves $ 4,774.7 $ 4,841.3 $ 4,896.7 $ 4,980.0 GIC AND OTHER ANNUITIES: Net written premiums & deposits (2) $ 1,792.1 $ 1,510.3 $ 1,123.1 $ 823.4 Policyholder account balances & benefit reserves: (1) Guaranteed investment contracts $ 4,912.2 $ 5,840.1 $ 5,746.0 $ 5,590.9 Other group annuities 4,854.2 5,142.8 5,171.7 5,162.9 ------------------ ------------------- ------------------ ----------------- Total $ 9,766.4 $10,982.9 $10,917.7 $10,753.8 ================== =================== ================== ================= 4Q 1999 VS. YTD 1999 VS. 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ (DECREASE) 1998 1999 (DECREASE) ----------------- --------- ---------- ---------------------- REVENUES, NET OF INTEREST EXPENSE * 6% $ 3,012 $ 3,394 13% CORE INCOME 9% $ 493 $ 623 26% PRE-TAX CONTRIBUTION BY SOURCE: Deferred and payout annuities 32% $ 346.5 $ 494.1 43% Group annuities 45% 120.3 158.4 32% Life and long term care insurance (7%) 154.4 174.0 13% Other (includes run-off and return on excess capital) (47%) 132.4 118.5 (10%) --------- ---------- Total 11% $ 753.6 $ 945.0 25% ========= ========== DEFERRED ANNUITIES: Number of annuities in force (000): Fixed (7%) Variable 24% Total 11% Number of annuities issued (000): Fixed 2% 18.0 14.4 (20%) Variable (10%) 169.3 182.2 8% --------- ---------- Total (9%) 187.3 196.6 5% ========= ========== Net written premiums & deposits: Fixed 39% $ 908.1 $ 1,007.5 11% Variable 42% 2,892.2 4,265.1 47% --------- ---------- Total 42% $ 3,800.3 $ 5,272.6 39% ========= ========== Policyholder account balances & benefit reserves: (1) Fixed 1% Variable 49% Total 31% PAYOUT ANNUITIES: Net written premiums & deposits (18%) $ 429.0 $ 448.4 5% Policyholder account balances & benefit reserves 5% $ 4,743.6 $ 4,980.0 5% GIC AND OTHER ANNUITIES: Net written premiums & deposits (2) (16%) $ 3,689.6 $ 5,248.9 42% Policyholder account balances & benefit reserves: (1) Guaranteed investment contracts 34% Other group annuities 5% Total 18% (1) Includes general account, separate accounts and managed funds. (2) Excludes deposits of $13.0, $197.0, $14.0 and $33.3 in the 1998 first, second, third and fourth quarters, respectively, and $23.2, $416.0, $70.0 and $71.0 in the 1999 first, second, third and fourth quarters, related to Travelers plans previously managed externally. * Excludes realized gains on investments 18 GLOBAL CONSUMER - INSURANCE [CITIGROUP LOGO] TRAVELERS LIFE AND ANNUITY - PAGE 2 (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 ----------------- ------------------ ------------------ ------------------ INDIVIDUAL LIFE INSURANCE: Life insurance in force (in billions, face amt.): Term $ 30.6 $ 30.9 $ 31.4 $ 32.1 Permanent (universal and whole life) 21.8 22.3 22.8 23.3 ----------------- ------------------ ------------------ ------------------ Total $ 52.4 $ 53.2 $ 54.2 $ 55.4 ================= ================== ================== ================== Number of life policies in force (000) 525.2 522.9 520.0 518.1 Life insurance issued (in billions, face amt.) $ 2.0 $ 2.1 $ 2.2 $ 2.6 Number of life policies issued (000) 7.1 7.9 6.8 7.4 Net written premiums and deposits: Direct periodic premiums and deposits $ 76.2 $ 78.2 $ 77.9 $ 89.2 Single premium deposits 23.8 20.5 17.1 23.7 Reinsurance (14.8) (16.0) (16.5) (18.7) ----------------- ------------------ ------------------ ------------------ Total $ 85.2 $ 82.7 $ 78.5 $ 94.2 ================= ================== ================== ================== Policyholder account balances & benefit reserves $ 2,327.1 $ 2,360.0 $ 2,366.9 $ 2,436.1 INDIVIDUAL LONG TERM CARE INSURANCE: Number of policies in force (000) 107.7 113.6 118.5 122.2 Net earned premiums $ 45.6 $ 48.7 $ 51.8 $ 53.7 Net written premiums $ 44.5 $ 53.7 $ 53.3 $ 61.5 ALL BUSINESSES: Net investment income (pre-tax) $ 483.0 $ 498.5 $ 476.2 $ 510.0 Interest credited to contractholders $ 215.0 $ 210.3 $ 220.4 $ 230.8 STATUTORY DATA: TRAVELERS INSURANCE COMPANY Statutory capital and surplus $ 4,142.6 $ 4,370.3 $ 4,230.5 $ 4,953.9 Surplus to liabilities ratio 19.4% 20.0% 18.2% 20.4% 1Q 2Q 3Q 4Q 1999 1999 1999 1999 ----------------- ------------------ ------------------ ------------------ INDIVIDUAL LIFE INSURANCE: Life insurance in force (in billions, face amt.): Term $ 32.8 $ 33.4 $ 33.6 $ 33.6 Permanent (universal and whole life) 23.8 24.3 24.8 27.0 ----------------- ------------------ ------------------ ------------------ Total $ 56.6 $ 57.7 $ 58.4 $ 60.6 ================= ================== ================== ================== Number of life policies in force (000) 515.8 513.8 510.9 509.2 Life insurance issued (in billions, face amt.) $ 2.5 $ 2.4 $ 2.0 $ 3.8 Number of life policies issued (000) 7.4 8.0 6.3 8.1 Net written premiums and deposits: Direct periodic premiums and deposits $ 84.5 $ 86.7 $ 88.3 $ 149.2 Single premium deposits 16.2 20.8 17.2 30.0 Reinsurance (16.8) (17.8) (17.9) (18.5) ----------------- ------------------ ------------------ ------------------ Total $ 83.9 $ 89.7 $ 87.6 $ 160.7 ================= ================== ================== ================== Policyholder account balances & benefit reserves $ 2,468.3 $ 2,511.0 $ 2,594.1 $ 2,682.0 INDIVIDUAL LONG TERM CARE INSURANCE: Number of policies in force (000) 125.9 129.2 132.5 136.2 Net earned premiums $ 55.2 $ 56.5 $ 58.2 $ 60.1 Net written premiums $ 52.6 $ 59.8 $ 59.5 $ 67.8 ALL BUSINESSES: Net investment income (pre-tax) $ 525.4 $ 578.8 $ 593.2 $ 579.1 Interest credited to contractholders $ 225.7 $ 230.9 $ 239.0 $ 241.4 STATUTORY DATA: TRAVELERS INSURANCE COMPANY Statutory capital and surplus $ 4,955.9 $ 4,976.9 $ 5,010.2 $ 4,988.7 Surplus to liabilities ratio 19.8% 19.5% 20.2% 20.8% 4Q 1999 VS. YTD 1999 VS. 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ (DECREASE) 1998 1999 (DECREASE) ----------------- --------- --------- ----------------- INDIVIDUAL LIFE INSURANCE: Life insurance in force (in billions, face amt.): Term 5% Permanent (universal and whole life) 16% Total 9% Number of life policies in force (000) (2%) 518.1 509.2 (2%) Life insurance issued (in billions, face amt.) 46% $ 8.9 $ 10.7 20% Number of life policies issued (000) 9% 29.2 29.8 2% Net written premiums and deposits: Direct periodic premiums and deposits 67% $ 321.5 $ 408.7 27% Single premium deposits 27% 85.1 84.2 (1%) Reinsurance (1%) (66.0) (71.0) 8% --------- --------- Total 71% $ 340.6 $ 421.9 24% ========= ========= Policyholder account balances & benefit reserves 10% INDIVIDUAL LONG TERM CARE INSURANCE: Number of policies in force (000) 11% Net earned premiums 12% $ 199.8 $ 230.0 15% Net written premiums 10% $ 213.0 $ 239.7 13% ALL BUSINESSES: Net investment income (pre-tax) 14% $ 1,967.7 $2,276.5 16% Interest credited to contractholders 5% $ 876.5 $ 937.0 7% STATUTORY DATA: TRAVELERS INSURANCE COMPANY Statutory capital and surplus 1% Surplus to liabilities ratio 19 GLOBAL CONSUMER - INSURANCE [CITIGROUP LOGO] PRIMERICA FINANCIAL SERVICES (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 ---------- ---------- ---------- ---------- REVENUES, NET OF INTEREST EXPENSE * $ 400 $ 420 $ 413 $ 421 CORE INCOME (1) Life insurance $ 75 $ 80 $ 77 $ 75 Other financial products 20 23 22 28 ---------- ---------- ---------- ---------- Total core income $ 95 $ 103 $ 99 $ 103 ========== ========== ========== ========== Face value (in billions) of: Life insurance issued $ 13.0 $ 15.8 $ 14.2 $ 14.4 Life insurance in force $ 372.5 $ 377.5 $ 380.6 $ 383.7 Number of life policies issued (000) 51.1 61.2 55.6 55.7 Number of life policies in force (000) 2,141.6 2,151.1 2,153.1 2,151.8 Annualized issued premiums $ 40.8 $ 48.7 $ 45.0 $ 44.8 Direct premiums $ 306.2 $ 312.3 $ 311.6 $ 313.7 Earned premiums: PFS Individual term life $ 244.7 $ 248.8 $ 246.1 $ 247.3 Other 15.5 17.1 15.1 22.6 ---------- ---------- ---------- ---------- Total $ 260.2 $ 265.9 $ 261.2 $ 269.9 ========== ========== ========== ========== Mutual fund sales at NAV: Salomon Smith Barney Asset Management funds $ 335.6 $ 400.7 $ 383.9 $ 341.4 Other funds 228.8 308.6 249.8 197.3 ---------- ---------- ---------- ---------- Total U.S. mutual fund sales 564.4 709.3 633.7 538.7 Mutual fund sales - Canada 204.3 123.9 91.3 76.5 ---------- ---------- ---------- ---------- Total mutual fund sales $ 768.7 $ 833.2 $ 725.0 $ 615.2 ========== ========== ========== ========== Cash advanced on $.M.A.R.T. and $.A.F.E. loans (2) $ 316.6 $ 410.6 $ 347.4 $ 386.5 Variable annuity net written premiums and deposits $ 126.3 $ 175.2 $ 171.9 $ 178.6 SECURE net written premiums (3), (4) $ 38.0 $ 55.8 $ 60.8 $ 58.7 Agents licensed for: Life insurance 76,835 77,274 79,081 80,725 Mutual funds 28,475 28,864 29,176 26,517 $.M.A.R.T. / $.A.F.E. loans 96,188 96,422 117,704 129,310 Variable annuities 12,924 13,169 13,269 13,434 Long term care -- -- -- -- Home & auto insurance 10,051 11,123 12,683 14,083 Financial Needs Analyses submitted 140,617 130,549 132,771 131,080 1Q 2Q 3Q 4Q 1999 1999 1999 1999 ---------- ---------- ---------- ---------- REVENUES, NET OF INTEREST EXPENSE * $ 432 $ 443 $ 444 $ 456 CORE INCOME (1) Life insurance $ 86 $ 89 $ 88 $ 84 Other financial products 24 24 26 31 ---------- ---------- ---------- ---------- Total core income $ 110 $ 113 $ 114 $ 115 ========== ========== ========== ========== Face value (in billions) of: Life insurance issued $ 13.6 $ 15.5 $ 12.4 $ 14.7 Life insurance in force $ 386.3 $ 391.7 $ 392.8 $ 394.9 Number of life policies issued (000) 51.6 58.0 47.1 53.2 Number of life policies in force (000) 2,147.1 2,150.9 2,142.3 2,135.5 Annualized issued premiums $ 42.4 $ 48.4 $ 39.3 $ 43.4 Direct premiums $ 315.2 $ 321.0 $ 320.5 $ 322.9 Earned premiums: PFS Individual term life $ 251.6 $ 252.7 $ 250.5 $ 252.7 Other 15.5 15.9 14.3 18.1 ---------- ---------- ---------- ---------- Total $ 267.1 $ 268.6 $ 264.8 $ 270.8 ========== ========== ========== ========== Mutual fund sales at NAV: Salomon Smith Barney Asset Management funds $ 407.7 $ 453.1 $ 393.7 $ 389.3 Other funds 233.5 277.3 257.6 307.6 ---------- ---------- ---------- ---------- Total U.S. mutual fund sales 641.2 730.4 651.3 696.9 Mutual fund sales - Canada 143.2 76.2 86.1 98.2 ---------- ---------- ---------- ---------- Total mutual fund sales $ 784.4 $ 806.6 $ 737.4 $ 795.1 ========== ========== ========== ========== Cash advanced on $.M.A.R.T. and $.A.F.E. loans (2) $ 419.2 $ 492.7 $ 488.3 $ 519.8 Variable annuity net written premiums and deposits $ 223.4 $ 278.6 $ 247.6 $ 240.5 SECURE net written premiums (3), (4) $ 57.2 $ 62.6 $ 58.5 $ 46.3 Agents licensed for: Life insurance 79,738 79,251 77,259 79,809 Mutual funds 27,129 27,053 26,873 24,566 $.M.A.R.T. / $.A.F.E. loans 129,556 118,762 108,377 95,816 Variable annuities 13,816 14,497 16,042 16,424 Long term care -- -- 3,419 6,540 Home & auto insurance 15,102 14,734 15,425 14,284 Financial Needs Analyses submitted 142,451 122,958 111,136 113,748 YTD 1999 VS. 4Q 1999 VS. YTD 1998 4Q 1998 INCREASE/ FULL YEAR FULL YEAR INCREASE/ (DECREASE) 1998 1999 (DECREASE) --------------- ---------- ---------- -------- REVENUES, NET OF INTEREST EXPENSE * 8% $ 1,654 $ 1,775 7% CORE INCOME (1) Life insurance 12% $ 307 $ 347 13% Other financial products 11% 93 105 13% ---------- ---------- -------- Total core income 12% $ 400 $ 452 13% ========== ========== ========== Face value (in billions) of: Life insurance issued 2% $ 57.4 $ 56.2 (2%) Life insurance in force 3% $ 383.7 $ 394.9 3% Number of life policies issued (000) (4%) 223.6 209.9 (6%) Number of life policies in force (000) (1%) 2,151.8 2,135.5 (1%) Annualized issued premiums (3%) $ 179.3 $ 173.5 (3%) Direct premiums 3% $ 1,243.8 $ 1,279.6 3% Earned premiums: PFS Individual term life 2% $ 986.9 $ 1,007.5 2% Other (20%) 70.3 63.8 (9%) ---------- ---------- -------- Total -- $ 1,057.2 $ 1,071.3 1% ========== ========== ========== Mutual fund sales at NAV: Salomon Smith Barney Asset Management funds 14% $ 1,461.6 $ 1,643.8 12% Other funds 56% 984.5 1,076.0 9% ---------- ---------- -------- Total U.S. mutual fund sales 29% 2,446.1 2,719.8 11% Mutual fund sales - Canada 28% 496.0 403.7 (19%) ---------- ---------- -------- Total mutual fund sales 29% $ 2,942.1 $ 3,123.5 6% ========== ========== ========== Cash advanced on $.M.A.R.T. and $.A.F.E. loans (2) 34% $ 1,461.1 $ 1,920.0 31% Variable annuity net written premiums and deposits 35% $ 652.0 $ 990.1 52% SECURE net written premiums (3), (4) (21%) $ 213.3 $ 224.6 5% Agents licensed for: Life insurance (1%) Mutual funds (7%) $.M.A.R.T. / $.A.F.E. loans (26%) Variable annuities 22% Long term care -- Home & auto insurance 1% Financial Needs Analyses submitted (13%) 535,017 490,293 (8%) (1) The 1998 fourth quarter reflects a one time $4.5 million reclass of income from life insurance to other financial products as a result of bank holding company requirements. (2) The $.M.A.R.T. and $.A.F.E. loan products are marketed by PFS; the receivables are reflected in the assets of CitiFinancial. (3) The SECURE property casualty insurance products are marketed by PFS; the premiums are reflected in the operating earnings of Travelers Property Casualty Corp. (4) PFS discontinued marketing the SECURE products in November 1999. * Excludes realized gains on investments 20 GLOBAL CONSUMER - INSURANCE [CITIGROUP LOGO] TRAVELERS PROPERTY CASUALTY - PERSONAL LINES (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 -------- -------- -------- -------- REVENUES, NET OF INTEREST EXPENSE * $ 868 $ 899 $ 924 $ 975 CORE INCOME $ 82 $ 81 $ 68 $ 88 NET WRITTEN PREMIUMS BY PRODUCT LINE: (1) Auto $ 555.7 $ 578.3 $ 590.8 $ 603.0 Homeowners and other 250.3 295.6 317.9 298.5 -------- -------- -------- -------- Total net written premiums $ 806.0 $ 873.9 $ 908.7 $ 901.5 ======== ======== ======== ======== NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL: (1) Independent agents $ 682.5 $ 718.0 $ 731.8 $ 720.3 Affinity group marketing 53.4 61.0 72.9 76.9 SECURE 38.0 55.8 60.8 58.7 Joint marketing arrangements 32.1 39.1 43.2 45.6 -------- -------- -------- -------- Total net written premiums $ 806.0 $ 873.9 $ 908.7 $ 901.5 ======== ======== ======== ======== STATUTORY RATIO DEVELOPMENT: Earned premiums $ 770.8 $ 802.5 $ 835.7 $ 862.4 Losses and loss adjustment expenses 502.7 523.5 580.9 574.1 Other underwriting expenses 226.0 242.1 243.5 238.8 -------- -------- -------- -------- Total deductions 728.7 765.6 824.4 812.9 -------- -------- -------- -------- Statutory underwriting gain/(loss) $ 42.1 $ 36.9 $ 11.3 $ 49.5 ======== ======== ======== ======== STATUTORY COMBINED RATIO: (1) Loss and loss adjustment expense ratio 65.2% 65.2% 69.5% 66.6% Other underwriting expense ratio 28.0% 27.7% 26.8% 26.5% -------- -------- -------- -------- Combined ratio 93.2% 92.9% 96.3% 93.1% ======== ======== ======== ======== Net investment income (pre-tax) $ 95.4 $ 94.8 $ 88.6 $ 109.6 Effective tax rate on net investment income 29.4% 28.5% 27.4% 28.7% Catastrophe losses, net of reinsurance (after-tax) $ 8.6 $ 13.1 $ 21.8 $ -- 1Q 2Q 3Q 4Q 1999 1999 1999 1999 -------- -------- -------- -------- REVENUES, NET OF INTEREST EXPENSE * $ 983 $ 1,005 $ 1,018 $ 1,037 CORE INCOME $ 83 $ 79 $ 23 $ 94 NET WRITTEN PREMIUMS BY PRODUCT LINE: (1) Auto $ 619.6 $ 597.0 $ 581.1 $ 571.0 Homeowners and other 363.8 353.9 370.6 347.8 -------- -------- -------- -------- Total net written premiums $ 983.4 $ 950.9 $ 951.7 $ 918.8 ======== ======== ======== ======== NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL: (1) Independent agents $ 791.6 $ 750.6 $ 743.0 $ 721.2 Affinity group marketing 83.0 84.5 92.1 93.7 SECURE 57.2 62.6 58.5 46.3 Joint marketing arrangements 51.6 53.2 58.1 57.6 -------- -------- -------- -------- Total net written premiums $ 983.4 $ 950.9 $ 951.7 $ 918.8 ======== ======== ======== ======== STATUTORY RATIO DEVELOPMENT: Earned premiums $ 892.1 $ 905.1 $ 915.5 $ 921.6 Losses and loss adjustment expenses 594.3 627.1 702.7 619.8 Other underwriting expenses 269.8 242.5 258.7 244.7 -------- -------- -------- -------- Total deductions 864.1 869.6 961.4 864.5 -------- -------- -------- -------- Statutory underwriting gain/(loss) $ 28.0 $ 35.5 $ (45.9) $ 57.1 ======== ======== ======== ======== STATUTORY COMBINED RATIO: (1) Loss and loss adjustment expense ratio 66.6% 69.3% 76.8% 67.3% Other underwriting expense ratio 27.4% 25.5% 27.2% 26.6% -------- -------- -------- -------- Combined ratio 94.0% 94.8% 104.0% 93.9% ======== ======== ======== ======== Net investment income (pre-tax) $ 90.4 $ 98.8 $ 102.0 $ 109.0 Effective tax rate on net investment income 27.2% 27.7% 28.4% 28.9% Catastrophe losses, net of reinsurance (after-tax) $ 8.1 $ 23.2 $ 48.2 $ -- YTD 1999 VS. 4Q 1999 VS. YTD 1998 4Q 1998 INCREASE/ FULL YEAR FULL YEAR INCREASE/ (DECREASE) 1998 1999 (DECREASE) -------- -------- -------- -------- REVENUES, NET OF INTEREST EXPENSE * 6% $ 3,666 $ 4,043 10% CORE INCOME 7% $ 319 $ 279 (13%) NET WRITTEN PREMIUMS BY PRODUCT LINE: (1) Auto (5%) $2,327.8 $2,368.7 2% Homeowners and other 17% 1,162.3 1,436.1 24% -------- -------- Total net written premiums 2% $3,490.1 $3,804.8 9% ======== ======== NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL: (1) Independent agents -- $2,852.6 $3,006.4 5% Affinity group marketing 22% 264.2 353.3 34% SECURE (21%) 213.3 224.6 5% Joint marketing arrangements 26% 160.0 220.5 38% -------- -------- Total net written premiums 2% $3,490.1 $3,804.8 9% ======== ======== STATUTORY RATIO DEVELOPMENT: Earned premiums 7% $3,271.4 $3,634.3 11% Losses and loss adjustment expenses 8% 2,181.2 2,543.9 17% Other underwriting expenses 2% 950.4 1,015.7 7% -------- -------- Total deductions 6% 3,131.6 3,559.6 14% -------- -------- Statutory underwriting gain/(loss) 15% $ 139.8 $ 74.7 (47%) ======== ======== STATUTORY COMBINED RATIO: (1) Loss and loss adjustment expense ratio 66.7% 70.0% Other underwriting expense ratio 27.2% 26.7% -------- -------- Combined ratio 93.9% 96.7% ======== ======== Net investment income (pre-tax) (1%) $ 388.4 $ 400.2 3% Effective tax rate on net investment income 28.5% 28.1% Catastrophe losses, net of reinsurance (after-tax) -- $ 43.5 $ 79.5 83% (1) The 1999 first quarter and 1999 full year net written premiums include an adjustment associated with a reinsurance transaction, which increased homeowners premiums written by independent agents by $71.7 million. Excluding this transaction, the statutory loss and loss adjustment expense ratio, other underwriting expense ratio, and combined ratio for the 1999 first quarter were 66.6%, 26.6% and 93.2%, respectively, and for the 1999 full year were 70.0%, 26.5% and 96.5%, respectively. * Excludes realized gains on investments 21 GLOBAL CONSUMER - INTERNATIONAL [CITIGROUP LOGO] EUROPE, MIDDLE EAST AND AFRICA (In millions of dollars) 1Q 2Q 3Q 4Q 1Q 2Q 1998 1998 1998 1998 1999 1999 ------ ------ ------ ------ ------ ------ Total Revenues, Net of Interest Expense $ 499 $ 525 $ 543 $ 576 $ 563 $ 565 Adjusted Operating Expenses 348 368 362 395 374 369 Provision for Benefits, Claims, and Credit Losses 71 69 74 85 80 77 ------ ------ ------ ------ ------ ------ Core Income Before Taxes 80 88 107 96 109 119 Income Taxes 31 35 43 37 42 47 ------ ------ ------ ------ ------ ------ Core Income $ 49 $ 53 $ 64 $ 59 $ 67 $ 72 ====== ====== ====== ====== ====== ====== Average Assets (in billions of dollars) $ 21 $ 21 $ 22 $ 23 $ 22 $ 22 ====== ====== ====== ====== ====== ====== Return on Assets 0.95% 1.01% 1.15% 1.02% 1.24% 1.31% ====== ====== ====== ====== ====== ====== Average Loans (in billions of dollars) $ 15.4 $ 15.8 $ 16.5 $ 17.4 $ 16.7 $ 16.4 Average Customer Deposits (in billions of dollars) $ 17.0 $ 17.0 $ 17.1 $ 17.9 $ 17.3 $ 17.0 Accounts (in millions) 9.9 10.0 10.2 10.2 10.6 10.7 Net Credit Loss Ratio 1.77% 1.71% 1.64% 1.70% 1.81% 1.71% Loans 90+ Days Past Due: In millions of dollars $ 891 $ 904 $ 955 $ 955 $ 893 $ 899 % 5.83% 5.73% 5.52% 5.46% 5.40% 5.46% YTD 1999 VS. 4Q 1999 VS. YTD 1998 3Q 4Q 4Q 1998 INCREASE/ FULL YEAR FULL YEAR INCREASE/ 1999 1999 (DECREASE) 1998 1999 (DECREASE) ------ ------ ----------------- ------ ------ ------------ Total Revenues, Net of Interest Expense $ 608 $ 599 4% $2,143 $2,335 9% Adjusted Operating Expenses 370 388 (2%) 1,473 1,501 2% Provision for Benefits, Claims, and Credit Losses 79 76 (11%) 299 312 4% ------ ------ ------ ------ Core Income Before Taxes 159 135 41% 371 522 41% Income Taxes 61 45 22% 146 195 34% ------ ------ ------ ------ Core Income $ 98 $ 90 53% $ 225 $ 327 45% ====== ====== ====== ====== Average Assets (in billions of dollars) $ 23 $ 22 (4%) $ 22 $ 22 -- ====== ====== ====== ====== Return on Assets 1.69% 1.62% 1.02% 1.49% ====== ====== ====== ====== Average Loans (in billions of dollars) $ 17.2 $ 17.2 (1%) $ 16.3 $ 16.9 4% Average Customer Deposits (in billions of dollars) $ 17.1 $ 16.6 (7%) $ 17.3 $ 17.0 (2%) Accounts (in millions) 10.9 11.1 8% Net Credit Loss Ratio 1.60% 1.56% Loans 90+ Days Past Due: In millions of dollars $ 953 $ 914 (4%) % 5.45% 5.33% GLOBAL CONSUMER - INTERNATIONAL ASIA PACIFIC (In millions of dollars) 1Q 2Q 3Q 4Q 1Q 2Q 1998 1998 1998 1998 1999 1999 ------ ------ ------ ------ ------ ------ Total Revenues, Net of Interest Expense $ 422 $ 457 $ 459 $ 511 $ 518 $ 543 Adjusted Operating Expenses 238 255 234 249 268 283 Provision for Benefits, Claims, and Credit Losses 50 64 63 74 88 89 ------ ------ ------ ------ ------ ------ Core Income Before Taxes 134 138 162 188 162 171 Income Taxes 52 53 62 72 61 64 ------ ------ ------ ------ ------ ------ Core Income $ 82 $ 85 $ 100 $ 116 $ 101 $ 107 ====== ====== ====== ====== ====== ====== Average Assets (in billions of dollars) $ 27 $ 28 $ 28 $ 29 $ 29 $ 30 ====== ====== ====== ====== ====== ====== Return on Assets 1.23% 1.22% 1.42% 1.59% 1.41% 1.43% ====== ====== ====== ====== ====== ====== Average Loans (in billions of dollars) $ 19.5 $ 19.7 $ 20.1 $ 21.6 $ 22.1 $ 22.9 Average Customer Deposits (in billions of dollars) $ 33.2 $ 34.9 $ 36.8 $ 39.6 $ 39.9 $ 40.6 Accounts (in millions) 6.5 6.8 7.3 7.6 8.1 8.6 Net Credit Loss Ratio 0.92% 1.17% 1.12% 1.24% 1.43% 1.33% Loans 90+ Days Past Due: In millions of dollars $ 316 $ 324 $ 384 $ 498 $ 513 $ 509 % 1.57% 1.64% 1.87% 2.28% 2.31% 2.17% YTD 1999 VS. 4Q 1999 VS. YTD 1998 3Q 4Q 4Q 1998 INCREASE/ FULL YEAR FULL YEAR INCREASE/ 1999 1999 (DECREASE) 1998 1999 (DECREASE) ------ ------ ----------------- --------- --------- ------------ Total Revenues, Net of Interest Expense $ 580 $ 607 19% $1,849 $2,248 22% Adjusted Operating Expenses 315 320 29% 976 1,186 22% Provision for Benefits, Claims, and Credit Losses 77 99 34% 251 353 41% ------ ------ ------ ------ Core Income Before Taxes 188 188 -- 622 709 14% Income Taxes 71 70 (3%) 239 266 11% ------ ------ ------ ------ Core Income $ 117 $ 118 2% $ 383 $ 443 16% ====== ====== ====== ====== Average Assets (in billions of dollars) $ 31 $ 32 10% $ 28 $ 31 11% ====== ====== ====== ====== Return on Assets 1.50% 1.46% 1.37% 1.43% ====== ====== ====== ====== Average Loans (in billions of dollars) $ 23.7 $ 24.5 13% $ 20.2 $ 23.3 15% Average Customer Deposits (in billions of dollars) $ 42.5 $ 45.4 15% $ 36.1 $ 42.1 17% Accounts (in millions) 9.0 9.2 21% Net Credit Loss Ratio 1.23% 1.15% Loans 90+ Days Past Due: In millions of dollars $ 450 $ 453 (9%) % 1.87% 1.80% 22 GLOBAL CONSUMER - INTERNATIONAL [CITIGROUP LOGO] LATIN AMERICA (In millions of dollars) 1Q 2Q 3Q 4Q 1Q 2Q 1998 1998 1998 1998 1999 1999 ------ ------ ------ ------ ------ ------ Total Revenues, Net of Interest Expense $ 354 $ 369 $ 431 $ 444 $ 466 $ 499 Adjusted Operating Expenses 233 248 287 300 291 299 Provision for Loan Losses 49 61 74 81 101 135 ------ ------ ------ ------ ------ ------ Core Income Before Taxes 72 60 70 63 74 65 Income Taxes 29 23 28 25 27 22 ------ ------ ------ ------ ------ ------ Core Income $ 43 $ 37 $ 42 $ 38 $ 47 $ 43 ====== ====== ====== ====== ====== ====== Average Assets (in billions of dollars) $ 9 $ 10 $ 13 $ 14 $ 14 $ 15 ====== ====== ====== ====== ====== ====== Return on Assets 1.94% 1.48% 1.28% 1.08% 1.36% 1.15% ====== ====== ====== ====== ====== ====== Average Loans (in billions of dollars) $ 7.5 $ 7.9 $ 8.0 $ 7.9 $ 7.8 $ 8.1 Average Customer Deposits (in billions of dollars) $ 8.9 $ 9.3 $ 10.7 $ 11.8 $ 12.8 $ 13.8 Accounts (in millions) 5.7 6.0 7.1 7.3 8.0 7.8 Net Credit Loss Ratio 2.45% 2.88% 3.48% 3.39% 4.74% 6.17% Loans 90+ Days Past Due: In millions of dollars $ 183 $ 209 $ 243 $ 288 $ 292 $ 346 % 2.38% 2.61% 3.05% 3.60% 3.75% 4.32% YTD 1999 VS. 4Q 1999 VS. INCREASE/ 3Q 4Q 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 1999 1999 (DECREASE) 1998 1999 (DECREASE) ------ ------ ------ ------ ------ ------ Total Revenues, Net of Interest Expense $ 504 $ 514 16% $1,598 $1,983 24% Adjusted Operating Expenses 302 301 -- 1,068 1,193 12% Provision for Loan Losses 117 94 16% 265 447 69% ------ ------ ------ ------ Core Income Before Taxes 85 119 89% 265 343 29% Income Taxes 30 36 44% 105 115 10% ------ ------ ------ ------ Core Income $ 55 $ 83 118% $ 160 $ 228 43% ====== ====== ====== ====== Average Assets (in billions of dollars) $ 14 $ 14 -- $ 12 $ 14 17% ====== ====== ====== ====== Return on Assets 1.56% 2.35% 1.33% 1.63% ====== ====== ====== ====== Average Loans (in billions of dollars) $ 7.9 $ 7.9 -- $ 7.8 $ 7.9 1% Average Customer Deposits (in billions of dollars) $ 13.6 $ 13.6 15% $ 10.2 $ 13.5 32% Accounts (in millions) 9.0 8.8 21% Net Credit Loss Ratio 5.55% 4.71% Loans 90+ Days Past Due: In millions of dollars $ 325 $ 320 11% % 4.10% 4.10% 23 GLOBAL CONSUMER [CITIGROUP LOGO] e-CITI (In millions of dollars) 1Q 2Q 3Q 4Q 1Q 2Q 1998 1998 1998 1998 1999 1999 ----- ----- ----- ----- ----- ----- Total Revenues, Net of Interest Expense $ 30 $ 34 $ 38 $ 47 $ 54 $ 55 Adjusted Operating Expenses 78 93 91 116 113 126 Provision for Loan Losses 1 1 -- 1 1 1 ----- ----- ----- ----- ----- ----- Core Income Before Tax Benefits (49) (60) (53) (70) (60) (72) Income Tax Benefits (19) (24) (20) (28) (24) (29) ----- ----- ----- ----- ----- ----- Core Income $ (30) $ (36) $ (33) $ (42) $ (36) $ (43) ===== ===== ===== ===== ===== ===== 4Q 1999 VS. YTD 1999 VS. 3Q 4Q 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ 1999 1999 (DECREASE) 1998 1999 (DECREASE) ----- ----- ----- ----- ----- ----- Total Revenues, Net of Interest Expense $ 57 $ 67 43% $ 149 $ 233 56% Adjusted Operating Expenses 140 148 28% 378 527 39% Provision for Loan Losses 1 2 100% 3 5 67% ----- ----- ----- ----- Core Income Before Tax Benefits (84) (83) (19%) (232) (299) (29%) Income Tax Benefits (33) (34) (21%) (91) (120) (32%) ----- ----- ----- ----- Core Income $ (51) $ (49) (17%) $(141) $(179) (27%) ===== ===== ===== ===== GLOBAL CONSUMER OTHER CONSUMER (1) (In millions of dollars) 1Q 2Q 3Q 4Q 1Q 2Q 1998 1998 1998 1998 1999 1999 ----- ----- ----- ----- ----- ----- Total Revenues, Net of Interest Expense $ 26 $ 22 $ 24 $ 28 $ 30 $ 24 Adjusted Operating Expenses 23 37 65 92 61 67 ----- ----- ----- ----- ----- ----- Core Income Before Tax Benefits 3 (15) (41) (64) (31) (43) Income Tax Benefits 3 (5) (17) (21) (12) (13) ----- ----- ----- ----- ----- ----- Core Income $-- $ (10) $ (24) $ (43) $ (19) $ (30) ===== ===== ===== ===== ===== ===== 4Q 1999 VS. YTD 1999 VS. 3Q 4Q 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ 1999 1999 (DECREASE) 1998 1999 (DECREASE) ----- ----- ----- ----- ----- ----- Total Revenues, Net of Interest Expense $ 14 $ (1) (104%) $ 100 $ 67 (33%) Adjusted Operating Expenses 33 34 (63%) 217 195 (10%) ----- ----- ----- ----- Core Income Before Tax Benefits (19) (35) 45% (117) (128) (9%) Income Tax Benefits (6) (11) 48% (40) (42) (5%) ----- ----- ----- ----- Core Income $ (13) $ (24) 44% $ (77) $ (86) (12%) ===== ===== ===== ===== (1) Includes unallocated marketing and staff expenses. 24 GLOBAL CORPORATE AND INVESTMENT BANK [CITIGROUP LOGO] SALOMON SMITH BARNEY - PAGE 1 (In millions of dollars) (Excluding Asset Management division) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 -------- -------- -------- -------- Revenues: Commissions $ 793 $ 781 $ 794 $ 835 Asset management and administration fees 300 344 350 331 Investment banking 616 633 514 518 Principal transactions 779 315 (1,332) 123 Other income 28 44 28 79 -------- -------- -------- -------- Total non-interest revenues 2,516 2,117 354 1,886 -------- -------- -------- -------- Interest and dividends 3,316 3,466 3,336 2,775 Interest expense 2,914 3,060 3,005 2,454 -------- -------- -------- -------- Net interest and dividends 402 406 331 321 -------- -------- -------- -------- Total revenues, net of interest expense 2,918 2,523 685 2,207 -------- -------- -------- -------- Non-interest expenses: Compensation and benefits 1,682 1,501 876 1,619 Communications 115 113 116 123 Occupancy and equipment 101 102 101 110 Floor brokerage and other production 112 108 111 122 Other operating and administrative expenses 197 157 122 214 -------- -------- -------- -------- Total non-interest expenses 2,207 1,981 1,326 2,188 -------- -------- -------- -------- Core Income before income taxes 711 542 (641) 19 Provision for income taxes 268 194 (245) 6 -------- -------- -------- -------- Core Income $ 443 $ 348 $ (396) $ 13 ======== ======== ======== ======== Total equity (in billions of dollars) (1) $ 8.9 $ 9.3 $ 8.7 $ 8.8 Return on equity (1) 23.1% 18.2% (14.5%) 3.4% Pre-tax profit margin 24.4% 21.5% (93.6%) 0.9% Non-compensation expenses as a percent of net revenues 18.0% 19.0% 65.7% 25.8% 1Q 2Q 3Q 4Q 1999 1999 1999 1999 -------- -------- -------- -------- Revenues: Commissions $ 900 $ 903 $ 812 $ 1,015 Asset management and administration fees 377 400 431 430 Investment banking 655 762 760 793 Principal transactions 974 698 328 544 Other income 65 49 65 105 -------- -------- -------- -------- Total non-interest revenues 2,971 2,812 2,396 2,887 -------- -------- -------- -------- Interest and dividends 2,611 2,864 2,809 2,982 Interest expense 2,241 2,407 2,414 2,590 -------- -------- -------- -------- Net interest and dividends 370 457 395 392 -------- -------- -------- -------- Total revenues, net of interest expense 3,341 3,269 2,791 3,279 -------- -------- -------- -------- Non-interest expenses: Compensation and benefits 1,794 1,707 1,556 1,587 Communications 117 111 123 138 Occupancy and equipment 106 104 109 109 Floor brokerage and other production 101 125 113 128 Other operating and administrative expenses 220 261 206 258 -------- -------- -------- -------- Total non-interest expenses 2,338 2,308 2,107 2,220 -------- -------- -------- -------- Core Income before income taxes 1,003 961 684 1,059 Provision for income taxes 355 351 252 395 -------- -------- -------- -------- Core Income $ 648 $ 610 $ 432 $ 664 ======== ======== ======== ======== Total equity (in billions of dollars) (1) $ 9.6 $ 9.6 $ 9.9 $ 9.3* Return on equity (1) 31.4% 29.1% 21.4% 31.2% Pre-tax profit margin 30.0% 29.4% 24.5% 32.3% Non-compensation expenses as a percent of net revenues 16.3% 18.4% 19.7% 19.3% 4Q 1999 VS. YTD 1999 VS. 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ (DECREASE) 1998 1999 (DECREASE) -------- -------- -------- -------- Revenues: Commissions 22% $ 3,203 $ 3,630 13% Asset management and administration fees 30% 1,325 1,638 24% Investment banking 53% 2,281 2,970 30% Principal transactions 342% (115) 2,544 NM Other income 33% 179 284 59% -------- -------- Total non-interest revenues 53% 6,873 11,066 61% -------- -------- Interest and dividends 7% 12,893 11,266 (13%) Interest expense 6% 11,433 9,652 (16%) -------- -------- Net interest and dividends 22% 1,460 1,614 11% -------- -------- Total revenues, net of interest expense 49% 8,333 12,680 52% -------- -------- Non-interest expenses: Compensation and benefits (2%) 5,678 6,644 17% Communications 12% 467 489 5% Occupancy and equipment (1%) 414 428 3% Floor brokerage and other production 5% 453 467 3% Other operating and administrative expenses 21% 690 945 37% -------- -------- Total non-interest expenses 1% 7,702 8,973 17% -------- -------- Core Income before income taxes NM 631 3,707 487% Provision for income taxes NM 223 1,353 507% -------- -------- Core Income NM $ 408 $ 2,354 477% ======== ======== Total equity (in billions of dollars) (1) 6% Return on equity (1) 7.5% 28.2% Pre-tax profit margin 7.6% 29.2% Non-compensation expenses as a percent of net revenues 24.3% 18.4% (1) Total equity and return on equity (core income) for Salomon Smith Barney in total (includes Salomon Smith Barney Asset Management). * Preliminary. NM Not meaningful 25 GLOBAL CORPORATE AND INVESTMENT BANK [CITIGROUP LOGO] SALOMON SMITH BARNEY - PAGE 2 (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 ---------- ---------- ---------- ---------- CLIENT ASSETS (IN BILLIONS OF DOLLARS) ASSETS UNDER FEE-BASED MANAGEMENT: Financial Consultant (FC) managed accounts $ 13.3 $ 14.3 $ 13.8 $ 16.5 Consulting Group externally managed assets 67.1 69.3 63.9 71.9 ---------- ---------- ---------- ---------- Total assets under fee-based management $ 80.4 $ 83.6 $ 77.7 $ 88.4 ========== ========== ========== ========== Total client assets $ 703.0 $ 724.3 $ 697.5 $ 773.8 PRIVATE CLIENT Registered Financial Consultants 10,321 10,494 10,573 10,803 Annualized retail gross production per FC (000) $ 452 $ 441 $ 431 $ 413 Domestic retail offices 432 439 442 449 INVESTMENT BANKING AND PUBLIC FINANCE UNDERWRITING (FULL CREDIT TO LEAD MGR.): Debt and equity Global volume $ 72,073.3 $ 80,556.7 $ 48,436.7 $ 53,002.8 Global market share 9.8% 11.1% 8.7% 9.4% Rank 4 2 3 2 U.S. volume $ 65,054.9 $ 71,902.1 $ 42,305.4 $ 45,690.4 U.S. market share 13.0% 14.1% 10.6% 11.8% Rank 2 2 3 2 Municipals(1) Volume $ 8,319.1 $ 10,913.8 $ 9,553.1 $ 7,180.0 Market share 11.8% 14.2% 14.7% 10.5% Rank 1 1 1 2 CAPITAL MARKETS/RESEARCH Number of institutional salespeople (2) 877 854 869 884 Number of stocks in which markets are made 1,464 1,465 1,418 1,329 % of S&P sectors covered by research 99% 99% 99% 98% 1Q 2Q 3Q 4Q 1999 1999 1999 1999 ---------- ---------- ---------- ---------- CLIENT ASSETS (IN BILLIONS OF DOLLARS) ASSETS UNDER FEE-BASED MANAGEMENT: Financial Consultant (FC) managed accounts $ 18.6 $ 20.2 $ 21.4 $ 27.4 Consulting Group externally managed assets 73.1 76.8 74.6 83.0 ---------- ---------- ---------- ---------- Total assets under fee-based management $ 91.7 $ 97.0 $ 96.0 $ 110.4 ========== ========== ========== ========== Total client assets $ 816.0 $ 852.1 $ 844.6 $ 965.0 PRIVATE CLIENT Registered Financial Consultants 10,918 11,032 11,086 11,333 Annualized retail gross production per FC (000) $ 481 $ 477 $ 465 $ 498 Domestic retail offices 457 467 472 476 INVESTMENT BANKING AND PUBLIC FINANCE UNDERWRITING (FULL CREDIT TO LEAD MGR.): Debt and equity Global volume $ 92,796.7 $ 82,899.0 $ 79,518.7 $ 38,214.5 Global market share 10.1% 9.9% 10.7% 7.1% Rank 2 2 2 4 U.S. volume $ 74,547.0 $ 68,304.7 $ 59,235.8 $ 28,527.2 U.S. market share 13.7% 13.8% 13.4% 8.7% Rank 2 2 2 3 Municipals(1) Volume $ 7,146.4 $ 5,412.1 $ 8,615.2 $ 9,622.5 Market share 12.4% 9.6% 15.9% 18.9% Rank 1 1 1 1 CAPITAL MARKETS/RESEARCH Number of institutional salespeople (2) 796 830 854 847 Number of stocks in which markets are made 1,305 1,296 1,305 1,335 % of S&P sectors covered by research 98% 98% 98% 98% 4Q 1999 VS. YTD 1999 VS. 4Q 1998 INCREASE/ FULL YEAR FULL YEAR YTD 1998 INCREASE/ (DECREASE) 1998 1999 (DECREASE) ---------- ---------- ---------- ---------- CLIENT ASSETS (IN BILLIONS OF DOLLARS) ASSETS UNDER FEE-BASED MANAGEMENT: Financial Consultant (FC) managed accounts 66% Consulting Group externally managed assets 15% Total assets under fee-based management 25% Total client assets 25% PRIVATE CLIENT Registered Financial Consultants 5% Annualized retail gross production per FC (000) 21% Domestic retail offices 6% INVESTMENT BANKING AND PUBLIC FINANCE UNDERWRITING (FULL CREDIT TO LEAD MGR.): Debt and equity Global volume (28%) $254,069.5 $293,428.9 15% Global market share 9.8% 9.7% Rank 2 2 U.S. volume (38%) $224,952.8 $230,614.7 3% U.S. market share 12.5% 12.8% Rank 2 2 Municipals(1) Volume 34% $ 35,966.0 $ 30,796.2 (14%) Market share 12.8% 14.0% Rank 1 1 CAPITAL MARKETS/RESEARCH Number of institutional salespeople (2) (4%) Number of stocks in which markets are made -- % of S&P sectors covered by research (1) Total long term excluding private placement. (2) Excludes institutional salespeople at Nikko in the 1999 quarters. 26 [CITIGROUP LOGO] GLOBAL CORPORATE AND INVESTMENT BANK TOTAL GLOBAL CORPORATE BANK (In millions of dollars) 4Q 1999 YTD 1999 VS. VS. 4Q 1998 YTD 1998 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q INCREASE/ FULL YEAR FULL YEAR INCREASE/ 1998 1998 1998 1998 1999 1999 1999 1999 (DECREASE) 1998 1999 (DECREASE) ---- ---- ---- ---- ---- ---- ---- ---- ---------- ---- ---- ---------- Total Revenues, Net of Interest Expense $1,948 $2,125 $1,550 $1,923 $2,229 $2,100 $2,036 $2,045 6% $7,546 $8,410 11% Adjusted Operating Expenses 1,213 1,334 1,321 1,317 1,286 1,266 1,261 1,257 (5%) 5,185 5,070 (2%) Provision for Loan Losses 65 28 232 69 111 110 37 90 30% 394 348 (12%) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Core Income Before Taxes and Minority Interest 670 763 (3) 537 832 724 738 698 30% 1,967 2,992 52% Income Taxes 249 283 (1) 198 310 269 276 255 29% 729 1,110 52% Minority Interest, Net of Tax -- -- -- -- 1 2 1 2 NM -- 6 NM ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Core Income $ 421 $ 480 $ (2) $ 339 $ 521 $ 453 $ 461 $ 441 30% $1,238 $1,876 52% ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== NM Not meaningful GLOBAL CORPORATE BANK EMERGING MARKETS (In millions of dollars) 4Q 1999 YTD 1999 VS. VS. 4Q 1998 FULL FULL YTD 1998 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q INCREASE/ YEAR YEAR INCREASE/ 1998 1998 1998 1998 1999 1999 1999 1999 (DECREASE) 1998 1999 (DECREASE) ---- ---- ---- ---- ---- ---- ---- ---- ---------- ---- ---- ---------- Total Revenues, Net of Interest Expense $ 959 $ 974 $ 723 $ 976 $1,139 $1,092 $1,051 $1,045 7% $3,632 $4,327 19% Adjusted Operating Expenses 478 507 515 515 506 508 521 527 2% 2,015 2,062 2% Provision for Loan Losses 62 79 198 85 115 110 32 90 6% 424 347 (18%) ----- ----- ----- ----- ------ ------ ------ ------ ------ ------ Core Income Before Taxes and Minority Interest 419 388 10 376 518 474 498 428 14% 1,193 1,918 61% Income Taxes 157 146 3 139 194 178 189 161 16% 445 722 62% Minority Interest, Net of Tax -- -- -- -- 1 2 1 2 NM -- 6 NM ----- ----- ----- ----- ------ ------ ------ ------ ------ ------ Core Income $ 262 $ 242 $ 7 $ 237 $ 323 $ 294 $ 308 $ 265 12% $ 748 $1,190 59% ===== ===== ===== ===== ====== ====== ====== ====== ====== ====== Average Assets (in billions of dollars) $ 75 $ 75 $ 78 $ 83 $ 81 $ 83 $ 82 $ 82 (1%) $ 78 $ 82 5% ===== ===== ===== ===== ====== ====== ====== ====== ====== ====== Return on Assets 1.42% 1.29% 0.04% 1.13% 1.62% 1.42% 1.49% 1.28% 0.96% 1.45% ===== ===== ===== ===== ====== ====== ====== ====== ====== ====== NM Not meaningful GLOBAL CORPORATE BANK GLOBAL RELATIONSHIP BANKING (In millions of dollars) 4Q 1999 YTD 1999 VS. VS. 4Q 1998 FULL FULL YTD 1998 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q INCREASE/ YEAR YEAR INCREASE/ 1998 1998 1998 1998 1999 1999 1999 1999 (DECREASE) 1998 1999 (DECREASE) ---- ---- ---- ---- ---- ---- ---- ---- ---------- ---- ---- ---------- Total Revenues, Net of Interest Expense $ 989 $1,151 $827 $ 947 $1,090 $1,008 $ 985 $1,000 6% $3,914 $4,083 4% Adjusted Operating Expenses 735 827 806 802 780 758 740 730 (9%) 3,170 3,008 (5%) Provision for Loan Losses 3 (51) 34 (16) (4) -- 5 -- NM (30) 1 103% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Core Income Before Taxes 251 375 (13) 161 314 250 240 270 68% 774 1,074 39% Income Taxes 92 137 (4) 59 116 91 87 94 59% 284 388 37% ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- Core Income $ 159 $ 238 $ (9) $ 102 $ 198 $ 159 $ 153 $ 176 73% $ 490 $ 686 40% ===== ===== ===== ===== ===== ===== ===== ===== ===== ===== Average Assets (in billions of dollars) $ 89 $ 92 $ 93 $ 93 $ 87 $ 80 $ 75 $ 80 (14%) $ 92 $ 81 (12%) ===== ===== ===== ===== ===== ===== ===== ===== ===== ===== Return on Assets 0.72% 1.04% -- 0.44% 0.92% 0.80% 0.81% 0.87% 0.53% 0.85% ===== ===== ===== ===== ===== ===== ===== ===== ===== ===== NM Not meaningful 27 [CITIGROUP LOGO] GLOBAL CORPORATE AND INVESTMENT BANK TRAVELERS PROPERTY CASUALTY - COMMERCIAL LINES (In millions of dollars) 4Q 1999 VS. 4Q 1998 FULL 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q INCREASE/ YEAR 1998 1998 1998 1998 1999 1999 1999 1999 (DECREASE) 1998 ---- ---- ---- ---- ---- ---- ---- ---- ---------- ---- REVENUES, NET OF INTEREST EXPENSE * $ 1,619 $ 1,584 $ 1,604 $ 1,674 $ 1,534 $ 1,558 $ 1,578 $ 1,595 (5%) $ 6,481 CORE INCOME $ 171 $ 174 $ 177 $ 201 $ 189 $ 201 $ 255 $ 200 -- $ 723 NET WRITTEN PREMIUMS BY MARKET: National accounts $ 186.6 $ 121.6 $ 175.3 $ 140.9 $ 149.9 $ 101.4 $ 148.8 $ 88.3 (37%) $ 624.4 Commercial accounts 462.6 440.8 446.0 450.7 443.6 440.1 469.9 462.7 3% 1,800.1 Select accounts 378.6 393.7 365.7 356.3 372.3 393.4 355.4 373.0 5% 1,494.3 Specialty accounts 184.0 164.7 181.2 164.8 148.2 159.8 158.4 143.1 (13%) 694.7 -------- -------- -------- -------- -------- -------- -------- -------- -------- Total net written premiums $1,211.8 $1,120.8 $1,168.2 $1,112.7 $1,114.0 $1,094.7 $1,132.5 $1,067.1 (4%) $4,613.5 ======== ======== ======== ======== ======== ======== ======== ======== ======== STATUTORY RATIO DEVELOPMENT: Earned premiums $ 1,126.2 $1,093.6 $1,139.2 $1,157.8 $1,072.7 $1,100.8 $1,110.3 $1,090.7 (6%) $4,516.8 Losses and loss adjustment expenses (1) 880.5 864.2 896.6 906.3 817.5 827.2 928.8 832.2 (8%) 3,547.6 Other underwriting expenses 346.0 345.6 341.7 336.4 317.9 333.8 349.8 350.6 4% 1,369.7 -------- -------- -------- -------- -------- -------- -------- -------- -------- Total deductions 1,226.5 1,209.8 1,238.3 1,242.7 1,135.4 1,161.0 1,278.6 1,182.8 (5%) 4,917.3 -------- -------- -------- -------- -------- -------- -------- -------- -------- Statutory underwriting loss $ (100.3) $ (116.2) $ (99.1) $ (84.9) $ (62.7) $ (60.2) $ (168.3) $ (92.1) (8%) $ (400.5) ======== ======== ======== ======== ======== ======== ======== ======== ======== STATUTORY COMBINED RATIO: (1), (2) Loss and loss adjustment expense ratio 78.2% 79.0% 78.7% 78.3% 76.2% 75.1% 83.7% 76.3% 78.5% Other underwriting expense ratio 28.6% 30.8% 29.3% 30.2% 28.5% 30.5% 30.9% 32.9% 29.7% -------- -------- -------- -------- -------- -------- -------- -------- -------- Combined ratio 106.8% 109.8% 108.0% 108.5% 104.7% 105.6% 114.6% 109.2% 108.2% ======== ======== ======== ======== ======== ======== ======== ======== ======== Net investment income (pre-tax) $ 412.5 $ 424.3 $ 411.8 $ 460.7 $ 412.6 $ 410.5 $ 420.2 $ 445.4 (3%) $1,709.3 Effective tax rate on net investment income 28.0% 27.5% 26.9% 27.6% 26.6% 26.5% 26.7% 27.1% 27.5% Catastrophe losses, net of reinsurance (after-tax) $ -- $ 10.4 $ 14.9 $ -- $ -- $ 9.9 $ 17.4 $ -- -- $ 25.3 YTD 1999 VS. FULL YTD 1998 YEAR INCREASE/ 1999 (DECREASE) ---- ---------- REVENUES, NET OF INTEREST EXPENSE * $ 6,265 (3%) CORE INCOME $ 845 17% NET WRITTEN PREMIUMS BY MARKET: National accounts $ 488.4 (22%) Commercial accounts 1,816.3 1% Select accounts 1,494.1 -- Specialty accounts 609.5 (12%) -------- Total net written premiums $4,408.3 (4%) ======== STATUTORY RATIO DEVELOPMENT: Earned premiums $4,374.5 (3%) Losses and loss adjustment expenses (1) 3,405.7 (4%) Other underwriting expenses 1,352.1 (1%) -------- Total deductions 4,757.8 (3%) -------- Statutory underwriting loss $ (383.3) 4% ======== STATUTORY COMBINED RATIO: (1), (2) Loss and loss adjustment expense ratio 77.9% Other underwriting expense ratio 30.7% -------- Combined ratio 108.6% ======== Net investment income (pre-tax) $1,688.7 (1%) Effective tax rate on net investment income 26.7% Catastrophe losses, net of reinsurance (after-tax) $ 27.3 8% (1) The 1999 third quarter and the 1999 full year include the effects of a settlement of an asbestos liability, which increased losses and loss adjustment expenses, for statutory purposes only, by $105.2 million. Excluding this transaction, the statutory loss and loss adjustment expense ratio, other underwriting expense ratio, and combined ratio for the 1999 third quarter were 74.2%, 30.9% and 105.1%, respectively; and for the 1999 full year were 75.4%, 30.7% and 106.1%, respectively. (2) Before policyholder dividends. * Excludes realized gains on investments 28 [CITIGROUP LOGO] GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING SSB CITI ASSET MANAGEMENT GROUP (In millions of dollars) 4Q 1999 YTD 1999 VS. VS. 4Q 1998 FULL FULL YTD 1998 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q INCREASE/ YEAR YEAR INCREASE/ 1998 1998 1998 1998 1999 1999 1999 1999 (DECREASE) 1998 1999 (DECREASE) ---- ---- ---- ---- ---- ---- ---- ---- ---------- ---- ---- ---------- Revenues: Investment advisory, admin. & distribution fees $ 288 $ 304 $ 301 $ 317 $ 341 $ 339 $ 344 $ 386 22% $1,210 $1,410 17% Unit Investment Trust revenues - net 13 7 17 4 9 10 21 9 125% 41 49 20% Other revenues 12 6 8 13 12 15 10 19 46% 39 56 44% ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total revenues 313 317 326 334 362 364 375 414 24% 1,290 1,515 17% Interest expense 8 7 8 8 8 7 8 7 (13%) 31 30 (3%) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total revenues, net of interest expense 305 310 318 326 354 357 367 407 25% 1,259 1,485 18% ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Expenses: Employee compensation and benefits 85 86 95 118 107 100 110 125 6% 384 442 15% Mutual fund commission expense 35 32 31 28 30 28 34 28 -- 126 120 (5%) Other expenses 72 79 80 94 86 90 88 124 32% 325 388 19% ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total expenses 192 197 206 240 223 218 232 277 15% 835 950 14% ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Core income before income taxes 113 113 112 86 131 139 135 130 51% 424 535 26% Provision for income taxes 44 45 45 34 51 55 53 52 53% 168 211 26% ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Core income $ 69 $ 68 $ 67 $ 52 $ 80 $ 84 $ 82 $ 78 50% $ 256 $ 324 27% ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Pre-tax profit margin 37.0% 36.5% 35.2% 26.4% 37.0% 38.9% 36.8% 31.4% 33.7% 36.0% ASSETS UNDER MANAGEMENT BY PRODUCT TYPE (in billions of dollars): Money market and institutional liquidity funds: Retail $ 57.1 $ 56.6 $ 60.9 $ 64.3 $ 68.8 $ 67.8 $ 69.0 $ 72.0 12% Institutional 10.4 9.6 10.9 13.5 16.9 15.2 16.6 18.9 40% ------ ------ ------ ------ ------ ------ ------ ------ Total money market and institutional liquidity funds 67.5 66.2 71.8 77.8 85.7 83.0 85.6 90.9 17% ------ ------ ------ ------ ------ ------ ------ ------ Long-term mutual funds: Equity / Balanced 42.5 43.4 37.5 42.5 43.8 45.7 44.7 50.4 19% Taxable Fixed Income 26.3 28.5 29.6 31.3 31.0 32.1 30.5 25.1 (20%) Tax Exempt Fixed Income 9.6 9.8 10.4 10.8 10.9 10.2 9.7 8.8 (19%) Annuities 3.7 3.3 3.1 3.7 4.1 4.5 4.6 5.4 46% ------ ------ ------ ------ ------ ------ ------ ------ Total long-term mutual funds 82.1 85.0 80.6 88.3 89.8 92.5 89.5 89.7 2% ------ ------ ------ ------ ------ ------ ------ ------ Managed accounts: Private client 33.3 35.0 35.4 40.0 43.2 46.3 47.5 51.1 28% Institutional 75.4 81.3 79.9 93.7 91.4 95.6 96.2 100.0 7% ------ ------ ------ ------ ------ ------ ------ ------ Total managed accounts 108.7 116.3 115.3 133.7 134.6 141.9 143.7 151.1 13% ------ ------ ------ ------ ------ ------ ------ ------ Alternative Investment Strategies 22.4 24.0 26.3 27.2 28.1 30.0 32.6 32.7 20% ------ ------ ------ ------ ------ ------ ------ ------ Total assets under management (1) $280.7 $291.5 $294.0 $327.0 $338.2 $347.4 $351.4 $364.4 11% ====== ====== ====== ====== ====== ====== ====== ====== ASSETS UNDER MANAGEMENT BY CLIENT TYPE (in billions of dollars): Retail $168.1 $172.5 $173.5 $189.2 $198.1 $202.5 $202.5 $209.7 11% Institutional (including Alternate Investment Strategies) 112.6 119.0 120.5 137.8 140.1 144.9 148.9 154.7 12% ------ ------ ------ ------ ------ ------ ------ ------ Total assets under management $280.7 $291.5 $294.0 $327.0 $338.2 $347.4 $351.4 $364.4 11% ====== ====== ====== ====== ====== ====== ====== ====== Unit Investment Trusts held in client accounts $ 13.1 $ 12.9 $ 12.4 $ 13.2 $ 13.2 $ 13.3 $ 12.8 $ 13.8 5% Number of Morningstar 4- and 5-star funds 23 25 24 24 22 17 20 20 (17%) (1) Includes $34, $31, $32 and $34 billion for the 1998 first, second, third and fourth quarters, respectively, and $29, $35, $36 and $31 billion for the 1999 first, second, third and fourth quarters, respectively, for Global Private Bank clients. GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING GLOBAL PRIVATE BANK (In millions of dollars) 4Q 1999 YTD 1999 VS. VS. 4Q 1998 FULL FULL YTD 1998 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q INCREASE/ YEAR YEAR INCREASE/ 1998 1998 1998 1998 1999 1999 1999 1999 (DECREASE) 1998 1999 (DECREASE) ---- ---- ---- ---- ---- ---- ---- ---- ---------- ---- ---- ---------- Total Revenues, Net of Interest Expense $ 262 $ 283 $ 284 $ 293 $ 272 $ 298 $ 302 $ 329 12% $1,122 $1,201 7% Adjusted Operating Expenses 175 178 178 183 173 179 183 208 14% 714 743 4% Provision for Loan Losses (7) -- 1 11 8 2 2 -- -- 5 12 140% ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Core Income Before Taxes 94 105 105 99 91 117 117 121 22% 403 446 11% Income Taxes 36 40 39 37 34 44 44 46 24% 152 168 11% ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Core Income $ 58 $ 65 $ 66 $ 62 $ 57 $ 73 $ 73 $ 75 21% $ 251 $ 278 11% ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Average Assets (in billions of dollars) $ 16 $ 16 $ 17 $ 18 $ 18 $ 19 $ 21 $ 23 28% $ 17 $ 20 18% ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Return on Assets 1.47% 1.63% 1.54% 1.37% 1.28% 1.54% 1.38% 1.29% 1.48% 1.39% ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Client Business Volumes (in billions of dollars) $105.0 $108.0 $105.0 $116.0 $119.0 $126.0 $128.0 $140.2 21% ====== ====== ====== ====== ====== ====== ====== ====== 29 [CITIGROUP LOGO] INVESTMENT ACTIVITIES (In millions of dollars) 4Q 1999 YTD 1999 VS. VS. 4Q 1998 FULL FULL YTD 1998 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q INCREASE/ YEAR YEAR INCREASE/ 1998 1998 1998 1998 1999 1999 1999 1999 (DECREASE) 1998 1999 (DECREASE) ---- ---- ---- ---- ---- ---- ---- ---- ---------- ---- ---- ---------- CORE INCOME: Proprietary Investments (1) $ 170 $ 165 $ 60 $ (54) $ 57 $ 133 $ 179 $ 115 (313%) $341 $484 42% LDC Debt Sales/Refinancing 145 123 15 19 15 11 11 12 (37%) 302 49 (84%) Portfolio Gains (2) 87 28 25 50 18 19 4 86 72% 190 127 (33%) ------ ------ ------ ------ ------ ------ ------ ------- ---- ---- Total Core Income $ 402 $ 316 $ 100 $ 15 $ 90 $ 163 $ 194 $ 213 NM $833 $660 (21%) ====== ====== ====== ====== ====== ====== ====== ======= ==== ==== 4Q 1999 VS. 4Q 1998 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q INCREASE/ 1998 1998 1998 1998 1999 1999 1999 1999 (DECREASE) ---- ---- ---- ---- ---- ---- ---- ---- ---------- INVESTED ASSETS: Proprietary Investments $4,708 $5,031 $5,036 $5,170 $5,210 $5,417 $6,203 $ 7,081 37% LDC Debt / Refinancing 5,220 4,059 3,273 3,286 3,380 3,360 3,306 3,371 3% ------ ------ ------ ------ ------ ------ ------ ------- Total invested assets $9,928 $9,090 $8,309 $8,456 $8,590 $8,777 $9,509 $10,452 24% ====== ====== ====== ====== ====== ====== ====== ======= (1) Includes Venture Capital Activities and certain other corporate investments. (2) Represents realized gains on investments held by insurance companies (see page 26). NM Not meaningful 30 [CITIGROUP LOGO] CITIGROUP CONSOLIDATED STATEMENT OF INCOME (In millions of dollars) 4Q 1999 VS. 4Q 1998 FULL FULL 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q INCREASE/ YEAR YEAR 1998 1998 1998 1998 1999 1999 1999 1999 (DECREASE) 1998 1999 ---- ---- ---- ---- ---- ---- ---- ---- ---------- ---- ---- REVENUES Loan interest, including fees $ 5,344 $ 5,625 $ 5,884 $ 6,075 $ 5,888 $ 5,614 $ 5,784 $ 5,886 (3%) $22,928 $23,172 Other interest and dividends 5,787 6,010 5,926 5,588 5,414 5,449 5,417 5,448 (3%) 23,311 21,728 Insurance premiums 2,340 2,395 2,423 2,692 2,526 2,616 2,636 2,663 (1%) 9,850 10,441 Commissions and fees 2,953 3,069 2,995 2,901 2,872 3,153 3,149 3,549 22% 11,918 12,723 Principal transactions 1,365 878 (1,016) 553 1,770 1,272 954 1,164 110% 1,780 5,160 Asset management and administration fees (1) 498 553 563 678 955 1,003 1,056 1,150 70% 2,292 4,164 Realized gains (losses) from sales of investments 378 332 (16) 146 53 188 35 281 92% 840 557 Other income 772 1,099 835 806 1,043 1,141 1,066 810 -- 3,512 4,060 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total revenues 19,437 19,961 17,594 19,439 20,521 20,436 20,097 20,951 8% 76,431 82,005 Interest expense 6,641 6,996 7,173 6,685 6,451 6,056 6,076 6,185 (7%) 27,495 24,768 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total revenues, net of interest expense 12,796 12,965 10,421 12,754 14,070 14,380 14,021 14,766 16% 48,936 57,237 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- PROVISIONS FOR BENEFITS, CLAIMS, AND CREDIT LOSSES Policyholder benefits and claims 1,994 2,047 2,099 2,225 2,048 2,151 2,258 2,214 -- 8,365 8,671 Provision for credit losses 595 656 826 674 729 790 632 686 2% 2,751 2,837 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total provisions for benefits, claims, and credit losses 2,589 2,703 2,925 2,899 2,777 2,941 2,890 2,900 -- 11,116 11,508 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- OPERATING EXPENSES Non-insurance compensation and benefits 3,491 3,429 2,819 3,597 3,755 3,615 3,531 3,635 1% 13,336 14,536 Insurance underwriting, acquisition and operating 812 811 756 895 825 802 770 892 -- 3,274 3,289 Restructuring / Merger Items -- (324) -- 1,119 (130) 47 22 (27) (102%) 795 (88) Other operating 2,436 2,764 2,764 3,182 2,871 3,060 2,938 3,175 -- 11,146 12,044 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total operating expenses 6,739 6,680 6,339 8,793 7,321 7,524 7,261 7,675 (13%) 28,551 29,781 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES 3,468 3,582 1,157 1,062 3,972 3,915 3,870 4,191 295% 9,269 15,948 Provision for income taxes 1,249 1,290 375 320 1,423 1,402 1,379 1,499 368% 3,234 5,703 Minority interest, net of income taxes 58 52 53 65 60 65 56 70 8% 228 251 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES 2,161 2,240 729 677 2,489 2,448 2,435 2,622 287% 5,807 9,994 Cumulative effect of accounting changes -- -- -- -- (127) -- -- -- -- -- (127) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- NET INCOME $ 2,161 $ 2,240 $ 729 $ 677 $ 2,362 $ 2,448 $ 2,435 $ 2,622 287% $ 5,807 $ 9,867 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= YTD 1999 VS. YTD 1998 INCREASE/ (DECREASE) ---------- REVENUES Loan interest, including fees 1% Other interest and dividends (7%) Insurance premiums 6% Commissions and fees 7% Principal transactions 190% Asset management and administration fees (1) 82% Realized gains (losses) from sales of investments (34%) Other income 16% Total revenues 7% Interest expense (10%) Total revenues, net of interest expense 17% PROVISIONS FOR BENEFITS, CLAIMS, AND CREDIT LOSSES Policyholder benefits and claims 4% Provision for credit losses 3% Total provisions for benefits, claims, and credit losses 4% OPERATING EXPENSES Non-insurance compensation and benefits 9% Insurance underwriting, acquisition and operating -- Restructuring / Merger Items (111%) Other operating 8% Total operating expenses 4% INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES 72% Provision for income taxes 76% Minority interest, net of income taxes 10% INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES 72% Cumulative effect of accounting changes NM NET INCOME 70% (1) The 1999 quarters include asset management and administrative fees for Citicorp subsidiaries, previously reflected in commissions and fees. NM - Not meaningful 31 [CITIGROUP LOGO] CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS (In millions of dollars) 4Q 1999 VS. 4Q 1998 FULL FULL 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q INCREASE/ YEAR YEAR 1998 1998 1998 1998 1999 1999 1999 1999 (DECREASE) 1998 1999 ---- ---- ---- ---- ---- ---- ---- ---- ---------- ---- ---- Total Revenues, Net of Interest Expense $12,796 $12,965 $10,421 $12,754 $14,070 $14,380 $14,021 $14,766 16% $48,936 $57,237 Effect of Credit Card Securitization Activity 462 581 576 568 588 570 552 559 (2%) 2,187 2,269 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ADJUSTED REVENUES, NET OF INTEREST EXPENSE 13,258 13,546 10,997 13,322 14,658 14,950 14,573 15,325 15% 51,123 59,506 Total Operating Expenses 6,739 6,680 6,339 8,793 7,321 7,524 7,261 7,675 (13%) 28,551 29,781 Restructuring / Merger Items (1) -- 324 -- (1,119) 130 (47) (22) 27 NM (795) 88 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ADJUSTED OPERATING EXPENSES 6,739 7,004 6,339 7,674 7,451 7,477 7,239 7,702 -- 27,756 29,869 Provisions for Benefits, Claims and Credit Losses 2,589 2,703 2,925 2,899 2,777 2,941 2,890 2,900 -- 11,116 11,508 Effect of Credit Card Securitization Activity 462 581 576 568 588 570 552 559 (2%) 2,187 2,269 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ADJUSTED PROVISIONS FOR BENEFITS, CLAIMS AND CREDIT LOSSES 3,051 3,284 3,501 3,467 3,365 3,511 3,442 3,459 -- 13,303 13,777 CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 3,468 3,258 1,157 2,181 3,842 3,962 3,892 4,164 91% 10,064 15,860 Taxes on Core Income 1,249 1,157 375 713 1,367 1,420 1,386 1,489 109% 3,494 5,662 Minority Interest, Net of Income Taxes 58 52 53 65 60 65 56 70 8% 228 251 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- CORE INCOME 2,161 2,049 729 1,403 2,415 2,477 2,450 2,605 86% 6,342 9,947 Restructuring / Merger Items After-tax (1) -- 191 -- (726) 74 (29) (15) 17 (102%) (535) 47 Cumulative Effect of Accounting Changes (2) -- -- -- -- (127) -- -- -- -- -- (127) ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- NET INCOME $ 2,161 $ 2,240 $ 729 $ 677 $ 2,362 $ 2,448 $ 2,435 $ 2,622 287% $ 5,807 $ 9,867 ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= YTD 1999 VS. YTD 1998 INCREASE/ (DECREASE) ---------- Total Revenues, Net of Interest Expense 17% Effect of Credit Card Securitization Activity 4% ADJUSTED REVENUES, NET OF INTEREST EXPENSE 16% Total Operating Expenses 4% Restructuring / Merger Items (1) NM ADJUSTED OPERATING EXPENSES 8% Provisions for Benefits, Claims and Credit Losses 4% Effect of Credit Card Securitization Activity 4% ADJUSTED PROVISIONS FOR BENEFITS, CLAIMS AND CREDIT LOSSES 4% CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 58% Taxes on Core Income 62% Minority Interest, Net of Income Taxes 10% CORE INCOME 57% Restructuring / Merger Items After-tax (1) (109%) Cumulative Effect of Accounting Changes (2) NM NET INCOME 70% (1) Includes restructuring charge of $1,122 million pre-tax ($703 million after-tax) and merger-related expenses of $65 million in the 1998 fourth quarter, a charge of $49 million pre-tax ($31 million after-tax) related to severance in the 1999 third quarter; and a charge of $82 million pre-tax ($51 million after-tax) in the 1999 fourth quarter; credits for reversals of prior charges of $324 million pre-tax ($191 million after-tax) in the 1998 second quarter, $68 million pre-tax ($42 million after-tax) in the 1998 fourth quarter, $211 million pre-tax ($125 million after-tax) in the 1999 first quarter, $68 million pre-tax ($41 million after-tax) in the 1999 third quarter, and $122 million pre-tax ($76 million after-tax) in the 1999 fourth quarter. The 1999 fourth, third, second and first quarters also included $13 million pre-tax ($8 million after-tax), $41 million pre-tax ($25 million after-tax), $47 million pre-tax ($29 million after-tax), and $81 million pre-tax ($51 million after-tax), respectively, of accelerated depreciation. (2) First quarter 1999 accounting changes refer to adoption of Statement of Position ("SOP") 97-3, "Accounting by Insurance and Other Enterprises for Insurance-Related Assessments" (SOP 97-3) of ($135) million; adoption of SOP 98-7, "Deposits Accounting: Accounting for Insurance and Reinsurance Contracts That Do Not Transfer Insurance Risk" of $23 million; and the adoption of SOP 98-5, "Reporting on the Costs of Start-Up Activities" of ($15) million. NM - Not meaningful 32 [CITIGROUP LOGO] CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS (In millions of dollars, except loan amounts in billions) EOP AVERAGE LOANS 90 DAYS OR MORE PAST DUE (1) LOANS NET CREDIT LOSSES (1) ------- -------------------------------- ------- ------------------------------ 4Q 1999 4Q 1999 3Q 1999 4Q 1998 4Q 1999 4Q 1999 3Q 1999 4Q 1998 ------- ------- ------- ------- ------- ------- ------- ------- CITIBANKING NORTH AMERICA $ 7.4 $ 55 $ 64 $ 93 $ 7.4 $ 23 $ 20 $ 27 Ratio 0.75% 0.87% 1.20% 1.23% 1.03% 1.38% MORTGAGE BANKING 30.1 696 629 625 28.6 11 8 17 Ratio 2.31% 2.28% 2.44% 0.15% 0.12% 0.27% U.S. BANKCARDS 73.7 1,061 995 1,001 70.1 783 773 790 Ratio 1.44% 1.42% 1.45% 4.43% 4.40% 4.82% OTHER CARDS 2.2 30 25 28 2.3 21 24 21 Ratio 1.38% 1.09% 1.23% 3.87% 3.82% 3.33% CITIFINANCIAL 15.5 203 186 172 15.1 83 71 77 Ratio 1.31% 1.27% 1.44% 2.19% 2.00% 2.67% EUROPE, MIDDLE EAST AND AFRICA 17.2 914 953 955 17.2 67 69 75 Ratio 5.33% 5.45% 5.46% 1.56% 1.60% 1.70% ASIA PACIFIC 25.1 453 450 498 24.5 71 73 68 Ratio 1.80% 1.87% 2.28% 1.15% 1.23% 1.24% LATIN AMERICA 7.8 320 325 288 7.9 94 110 67 Ratio 4.10% 4.10% 3.60% 4.71% 5.55% 3.39% GLOBAL PRIVATE BANK 22.4 120 145 193 21.7 7 2 11 Ratio 0.54% 0.69% 1.14% 0.13% 0.05% 0.25% OTHER 0.8 3 3 2 0.9 2 1 1 ------ ------- ------- --------- --------- ------- ------- ------- TOTAL MANAGED 202.2 3,855 3,775 3,855 195.7 1,162 1,151 1,154 Ratio 1.91% 1.95% 2.12% 2.36% 2.40% 2.61% SECURITIZATION ACTIVITIES: SECURITIZED CREDIT CARD RECEIVABLES (49.0) (725) (704) (658) (48.6) (537) (525) (536) LOANS HELD FOR SALE (4.5) (32) (37) (38) (4.3) (22) (27) (32) ------ ------- ------- --------- --------- ------- ------- ------- (53.5) (757) (741) (696) (52.9) (559) (552) (568) TOTAL LOANS $148.7 $ 3,098 $ 3,034 $ 3,159 $ 142.8 $ 603 $ 599 $ 586 ====== ======= ======= ========= ========= ======= ======= ======= Ratio 2.08% 2.17% 2.39% 1.68% 1.73% 1.80% (1) The ratios of 90 days or more past due and net credit losses are calculated based on end-of-period and average loans, respectively, both net of unearned income. 33 DETAILS OF CREDIT LOSS EXPERIENCE [CITIGROUP LOGO] (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 ------- ------- ------- ------- ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 6,137 $ 6,159 $ 6,529 $ 6,604 ------- ------- ------- ------- PROVISION FOR CREDIT LOSSES Consumer 540 628 594 605 Commercial 55 28 232 69 GROSS CREDIT LOSSES Consumer 618 716 686 715 Commercial 84 82 272 138 ------- ------- ------- ------- 702 798 958 853 ------- ------- ------- ------- CREDIT RECOVERIES Consumer 112 127 129 129 Commercial 29 54 40 47 ------- ------- ------- ------- 141 181 169 176 ------- ------- ------- ------- NET CREDIT LOSSES 561 617 789 677 ------- ------- ------- ------- Other -- net (1) (12) 331 38 16 ------- ------- ------- ------- ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 6,159 $ 6,529 $ 6,604 $ 6,617 ------- ------- ------- ------- Net consumer credit losses $ 506 $ 589 $ 557 $ 586 As a percentage of average consumer loans 1.75% 1.93% 1.80% 1.80% Net commercial credit losses $ 55 $ 28 $ 232 $ 91 As a percentage of average commercial loans 0.28% 0.13% 1.07% 0.39% ALLOWANCE FOR CREDIT LOSSES - --------------------------- Consumer (1) $ 2,830 $ 3,200 $ 3,275 $ 3,310 Commercial 3,329 3,329 3,329 3,307 ------- ------- ------- ------- Total Allowance for Credit Losses $ 6,159 $ 6,529 $ 6,604 $ 6,617 ======= ======= ======= ======= ALLOWANCE AS A PERCENT OF TOTAL LOANS Consumer 2.41% 2.67% 2.62% 2.50% Commercial 3.89% 3.80% 3.68% 3.69% Total 3.03% 3.15% 3.06% 2.98% 1Q 2Q 3Q 4Q 1999 1999 1999 1999 ------- ------- ------- ------- ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 6,617 $ 6,662 $ 6,743 $ 6,706 ------- ------- ------- ------- PROVISION FOR CREDIT LOSSES Consumer 618 680 595 596 Commercial 111 110 37 90 GROSS CREDIT LOSSES Consumer 695 772 744 739 Commercial 131 134 103 156 ------- ------- ------- ------- 826 906 847 895 ------- ------- ------- ------- CREDIT RECOVERIES Consumer 118 140 145 136 Commercial 20 24 16 57 ------- ------- ------- ------- 138 164 161 193 ------- ------- ------- ------- NET CREDIT LOSSES 688 742 686 702 ------- ------- ------- ------- Other -- net (1) 4 33 17 (11) ------- ------- ------- ------- ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 6,662 $ 6,743 $ 6,706 $ 6,679 ======= ======= ======= ======= Net consumer credit losses $ 577 $ 632 $ 599 $ 603 As a percentage of average consumer loans 1.78% 1.89% 1.73% 1.68% Net commercial credit losses $ 111 $ 110 $ 87 $ 99 As a percentage of average commercial loans 0.46% 0.48% 0.37% 0.42% ALLOWANCE FOR CREDIT LOSSES Consumer (1) $ 3,355 $ 3,436 $ 3,449 $ 3,435 Commercial 3,307 3,307 3,257 3,244 ------- ------- ------- ------- Total Allowance for Credit Losses $ 6,662 $ 6,743 $ 6,706 $ 6,679 ======= ======= ======= ======= ALLOWANCE AS A PERCENT OF TOTAL LOANS Consumer 2.56% 2.55% 2.47% 2.31% Commercial 3.46% 3.38% 3.34% 3.40% Total 2.94% 2.90% 2.83% 2.73% (1) The 1998 second quarter reflects the addition of $320 million of credit reserves related to the acquisition of the Universal Card portfolio. Page 24 34 CITIGROUP SUPPLEMENTAL DATA [CITIGROUP LOGO] (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 ------ ------ ------ ------ CASH BASIS AND RENEGOTIATED LOANS COMMERCIAL CASH-BASIS LOANS Collateral Dependent (at lower of cost or collateral value)(1) $ 242 $ 193 $ 170 $ 394 Other 1,102 1,100 1,110 1,201 ====== ====== ====== ====== Total Cash-Basis Loans $1,344 $1,293 $1,280 $1,595 ====== ====== ====== ====== COMMERCIAL CASH-BASIS LOANS Emerging Markets $ 953 $ 981 $ 982 $1,062 Global Relationship Banking 378 300 286 268 Insurance Subsidiaries -- -- -- 252 Investment Activities 13 12 12 13 ------ ------ ------ ------ Total Cash-Basis Loans $1,344 $1,293 $1,280 $1,595 ====== ====== ====== ====== COMMERCIAL RENEGOTIATED LOANS $ 61 $ 45 $ 48 $ 45 ====== ====== ====== ====== CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST HAS BEEN SUSPENDED $2,013 $2,031 $2,107 $2,283 ====== ====== ====== ====== OTHER REAL ESTATE OWNED (2) Consumer $ 258 $ 199 $ 260 $ 254 ------ ------ ------ ------ Emerging Markets 21 24 26 27 Global Relationship Banking 329 324 319 235 Insurance Subsidiaries 181 183 203 226 ------ ------ ------ ------ Total Commercial 531 531 548 488 ------ ------ ------ ------ Corporate/Other 8 8 8 8 ------ ------ ------ ------ Total $ 797 $ 738 $ 816 $ 750 ====== ====== ====== ====== ASSETS PENDING DISPOSITION (3) $ 103 $ 104 $ 103 $ 100 ====== ====== ====== ====== 1Q 2Q 3Q 4Q 1999 1999 1999 1999 ------ ------ ------ ------ CASH BASIS AND RENEGOTIATED LOANS COMMERCIAL CASH-BASIS LOANS Collateral Dependent (at lower of cost or collateral value)(1) $ 358 $ 214 $ 277 $ 241 Other 1,277 1,341 1,232 1,162 ====== ====== ====== ====== Total Cash-Basis Loans $1,635 $1,555 $1,509 $1,403 ====== ====== ====== ====== COMMERCIAL CASH-BASIS LOANS Emerging Markets $1,095 $1,197 $1,154 $1,044 Global Relationship Banking 308 279 302 304 Insurance Subsidiaries 218 66 40 41 Investment Activities 14 13 13 14 ====== ====== ====== ====== Total Cash-Basis Loans $1,635 $1,555 $1,509 $1,403 ====== ====== ====== ====== COMMERCIAL RENEGOTIATED LOANS $ 47 $ 50 $ 68 $ 59 ====== ====== ====== ====== CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST HAS BEEN SUSPENDED $2,252 $2,259 $2,214 $2,230 ====== ====== ====== ====== OTHER REAL ESTATE OWNED (2) Consumer $ 217 $ 213 $ 211 $ 204 ------ ------ ------ ------ Emerging Markets 26 28 50 44 Global Relationship Banking 212 178 178 156 Insurance Subsidiaries 217 420 420 286 ------ ------ ------ ------ Total Commercial 455 626 648 486 ------ ------ ------ ------ Corporate/Other 8 8 8 14 ------ ------ ------ ------ Total $ 680 $ 847 $ 867 $ 704 ====== ====== ====== ====== ASSETS PENDING DISPOSITION (3) $ 95 $ 89 $ 87 $ 86 ====== ====== ====== ====== (1) A cash-basis loan is defined as collateral dependent when repayment is expected to be provided solely by the underlying collateral and there are no other available and reliable sources of repayment, in which case the loans are written down to the lower of cost or collateral value. (2) Represents repossessed real estate, carried at lower of cost or collateral value. (3) Represents consumer residential mortgage loans that have a high probability of foreclosure, carried at lower of cost or collateral value. 35 MANAGED ASSETS AND INSURANCE INVESTMENTS [CITIGROUP LOGO] (In billions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 --------- --------- --------- --------- SSB Citi Asset Management Group $ 280.7 $ 291.5 $ 294.0 $ 327.0 SSB - Financial Consultant managed accounts 13.3 14.3 13.8 16.5 Travelers Life and Annuity 25.2 24.3 25.7 26.0 --------- --------- --------- --------- Total assets managed for third parties 319.2 330.1 333.5 369.5 Consulting Group externally managed assets 67.1 69.3 63.9 71.9 Other investments held by Insurance companies 37.1 38.2 40.1 37.6 --------- --------- --------- --------- Total managed assets and insurance investments $ 423.4 $ 437.6 $ 437.5 $ 479.0 ========= ========= ========= ========= 4Q 1999 VS. 1Q 2Q 3Q 4Q 4Q 1998 INCREASE/ 1999 1999 1999 1999 (DECREASE) --------- --------- --------- --------- ----------------- SSB Citi Asset Management Group $ 338.2 $ 347.4 $ 351.4 $ 364.4 11% SSB - Financial Consultant managed accounts 18.6 20.2 21.4 27.4 66% Travelers Life and Annuity 26.6 27.3 27.5 27.4 5% --------- --------- --------- --------- Total assets managed for third parties 383.4 394.9 400.3 419.2 13% Consulting Group externally managed assets 73.1 76.8 74.6 83.0 15% Other investments held by Insurance companies 39.0 39.3 38.6 37.5 -- --------- --------- --------- --------- Total managed assets and insurance investments $ 495.5 $ 511.0 $ 513.5 $ 539.7 13% ========= ========= ========= ========= INSURANCE INVESTMENT PORTFOLIO (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 -------- -------- -------- -------- Fixed-income investments: Available for sale, at market: Mortgage-backed securities - principally obligations of U.S. Government agencies $ 8,726 $ 8,693 $ 9,663 $ 9,599 U.S. Treasury securities and obligations of U.S. Government corporations and agencies 3,912 4,281 4,977 4,144 Corporates (including redeemable preferreds) 27,428 27,176 26,796 26,437 Obligations of states and political subdivisions 9,124 10,107 10,854 10,977 Debt securities issued by foreign governments 1,339 1,166 997 1,603 Held to maturity, at amortized cost 38 36 33 30 -------- -------- -------- -------- Total fixed income 50,567 51,459 53,320 52,790 Equity securities, at market 1,541 1,503 1,368 1,423 Short-term and other 6,709 6,179 7,477 5,757 -------- -------- -------- -------- Total investments held by Insurance companies $ 58,817 $ 59,141 $ 62,165 $ 59,970 ======== ======== ======== ======== After tax unrealized gains / (losses) on invested assets $ 1,121 $ 1,274 $ 1,793 $ 1,400 ======== ======== ======== ======== 4Q 1999 VS. 1Q 2Q 3Q 4Q 4Q 1998 INCREASE/ 1999 1999 1999 1999 (DECREASE) -------- -------- -------- -------- ----------------- Fixed-income investments: Available for sale, at market: Mortgage-backed securities - principally obligations of U.S. Government agencies $ 9,595 $ 9,294 $ 9,058 $ 9,010 (6%) U.S. Treasury securities and obligations of U.S. Government corporations and agencies 3,728 3,324 2,983 2,778 (33%) Corporates (including redeemable preferreds) 27,346 27,504 27,606 26,635 1% Obligations of states and political subdivisions 11,023 10,672 10,362 9,981 (9%) Debt securities issued by foreign governments 1,822 1,842 1,631 1,711 7% Held to maturity, at amortized cost 28 26 24 33 10% -------- -------- -------- -------- Total fixed income 53,542 52,662 51,664 50,148 (5%) Equity securities, at market 1,685 1,819 1,905 2,121 49% Short-term and other 6,651 5,301 5,524 5,322 (8%) -------- -------- -------- -------- Total investments held by Insurance companies $ 61,878 $ 59,782 $ 59,093 $ 57,591 (4%) ======== ======== ======== ======== After tax unrealized gains / (losses) on invested assets $ 943 $ 100 $ (251) $ (587) (142%) ======== ======== ======== ======== 36 CITICORP SUPPLEMENTAL DATA (In millions of dollars) 1Q 2Q 3Q 4Q 1998 1998 1998 1998 ------- ------- ------- ------- NET INTEREST REVENUE STATISTICS (TAXABLE EQUIVALENT BASIS) Net Interest Revenue $ 3,111 $ 3,273 $ 3,400 $ 3,583 Effect of Credit Card Securitization Activity 642 913 956 1,042 ------- ------- ------- ------- Total Adjusted $ 3,753 $ 4,186 $ 4,356 $ 4,625 ======= ======= ======= ======= Average Interest Earning Assets (in billions of dollars) $ 277.6 $ 288.9 $ 292.4 $ 299.7 Effect of Credit Card Securitization Activity 27.6 37.0 40.2 41.5 ------- ------- ------- ------- Total Adjusted $ 305.2 $ 325.9 $ 332.6 $ 341.2 ======= ======= ======= ======= Net Interest Margin (%) 4.54% 4.54% 4.61% 4.74% Effect of Credit Card Securitization Activity 0.45% 0.61% 0.59% 0.64% ------- ------- ------- ------- Total Adjusted 4.99% 5.15% 5.20% 5.38% ======= ======= ======= ======= 1Q 2Q 3Q 4Q FULL YEAR FULL YEAR 1999 1999 1999 1999 1998 1999 ------- ------- ------- ------- --------- --------- NET INTEREST REVENUE STATISTICS (TAXABLE EQUIVALENT BASIS) Net Interest Revenue $ 3,587 $ 3,651 $ 3,660 $ 3,714 $13,367 $14,612 Effect of Credit Card Securitization Activity 1,084 1,020 1,043 1,008 3,553 4,155 ------- ------- ------- ------- ------- ------- Total Adjusted $ 4,671 $ 4,671 $ 4,703 $ 4,722 $16,920 $18,767 ======= ======= ======= ======= ======= ======= Average Interest Earning Assets (in billions of dollars) $ 300.8 $ 304.4 $ 307.9 $ 313.4 $ 289.7 $ 306.6 Effect of Credit Card Securitization Activity 44.3 46.7 47.9 48.6 36.6 46.9 ------- ------- ------- ------- ------- ------- Total Adjusted $ 345.1 $ 351.1 $ 355.8 $ 362.0 $ 326.3 $ 353.5 ======= ======= ======= ======= ======= ======= Net Interest Margin (%) 4.84% 4.81% 4.72% 4.70% 4.61% 4.77% Effect of Credit Card Securitization Activity 0.65% 0.53% 0.52% 0.47% 0.57% 0.54% ------- ------- ------- ------- ------- ------- Total Adjusted 5.49% 5.34% 5.24% 5.17% 5.18% 5.31% ======= ======= ======= ======= ======= ======= 1Q 2Q 3Q 4Q 1998 1998 1998 1998 ------- ------- ------- ------- TRADING RELATED REVENUES BY BUSINESS SECTOR: Global Corporate (1): Emerging Markets $ 316 $ 287 $ 144 $ 253 Global Relationship Banking 338 329 153 231 ------- ------- ------- ------- Total Global Corporate 654 616 297 484 Global Consumer and Other 74 114 95 101 ------- ------- ------- ------- Total $ 728 $ 730 $ 392 $ 585 ======= ======= ======= ======= BY TRADING ACTIVITY: Foreign Exchange $ 412 $ 425 $ 403 $ 373 Derivative 196 182 94 223 Fixed Income 70 31 (30) (11) Other 50 92 (75) -- ------- ------- ------- ------- Total $ 728 $ 730 $ 392 $ 585 ======= ======= ======= ======= BY INCOME STATEMENT LINE: Foreign Exchange $ 349 $ 465 $ 474 $ 340 Trading Account 236 98 (159) 90 Other 143 167 77 155 ------- ------- ------- ------- Total $ 728 $ 730 $ 392 $ 585 ======= ======= ======= ======= 1Q 2Q 3Q 4Q FULL YEAR FULL YEAR 1999 1999 1999 1999 1998 1999 ------- ------- ------- ------- --------- --------- TRADING RELATED REVENUES BY BUSINESS SECTOR: Global Corporate (1): Emerging Markets $ 335 $ 253 $ 261 $ 237 $ 1,000 $ 1,086 Global Relationship Banking 414 253 297 299 1,051 1,263 ------- ------- ------- ------- ------- ------- Total Global Corporate 749 506 558 536 2,051 2,349 Global Consumer and Other 123 94 127 111 384 455 ------- ------- ------- ------- ------- ------- Total $ 872 $ 600 $ 685 $ 647 $ 2,435 $ 2,804 ======= ======= ======= ======= ======= ======= BY TRADING ACTIVITY: Foreign Exchange $ 430 $ 308 $ 394 $ 346 $ 1,613 $ 1,478 Derivative 303 192 197 205 695 897 Fixed Income 32 21 31 34 60 118 Other 107 79 63 62 67 311 ------- ------- ------- ------- ------- ------- Total $ 872 $ 600 $ 685 $ 647 $ 2,435 $ 2,804 ======= ======= ======= ======= ======= ======= BY INCOME STATEMENT LINE: Foreign Exchange $ 488 $ 368 $ 358 $ 355 $ 1,628 $ 1,569 Trading Account 304 138 252 194 265 888 Other 80 94 75 98 542 347 ------- ------- ------- ------- ------- ------- Total $ 872 $ 600 $ 685 $ 647 $ 2,435 $ 2,804 ======= ======= ======= ======= ======= ======= (1) Global Relationship Banking and Emerging Markets split restated to reflect current management structure. 37 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: January 19, 2000 CITIGROUP INC. By: /s/ Roger W. Trupin -------------------------------- Name: Roger W. Trupin Title: Controller